April 20, 2012

EU to reduce beef-export subsidies by 33%

The EU will reduce export subsidies for beef by 33% due to elevated prices and a "tight" market.

Export refunds for beef carcasses will drop to EUR163 (US$213) a metric tonne from EUR244 (US$320.67), the European Commission, the EU's executive arm, wrote in an e-mailed statement today. Rates for deboned, fresh and other cuts will be reduced accordingly, it wrote.

The proposals will take effect immediately on their publication in the EU's official journal, scheduled for tomorrow or the day after, the statement showed. The EU may export 445,000 tonnes of beef this year, accounting for 5% of world trade in the meat, the US Department of Agriculture forecast this month, cutting its outlook by 20,000 tonnes from October.

"The market is relatively tight, with production relatively low and prices high," the commission wrote. "In this context, exports are naturally reduced and imports are decreased due to a lack of supply worldwide."

Refunds for processed pig-meat products including hams and sausages were cut to zero, according to the commission. Export subsidies for eggs were lowered because of higher EU prices due to a shortage, it said.

Export refunds for poultry were left unchanged, with the subsidy for frozen whole chicken at EUR325 (US$427.09) a tonne, according to the statement.