July 21, 2005

 

USDA: EU livestock and products annual report

 

 

Total cattle herds are decreasing in the EU, as an increase in beef cattle has not offset the decrease in dairy herds. The increases in beef cattle are mainly in the new member states.

 

This trend is likely to continue in 2006. As a result, slaughter and beef production is decreasing too.

 

Cattle slaughter in new member states is increasing after a significant decline in 2004, due to a large amount of cattle export into the EU-15. It is expected that the drought may lead to an increase in slaughter in Spain and Portugal, as farmers run out of forage. 

 

With EU beef consumption being fairly stable again after the public recovers from the BSE scares, beef imports-mainly from South-America-are increasing, while beef exports are decreasing. 

 

Since the EU became a net importer of beef in 2003, all beef stocks have been sold and beef prices have risen to a record level. This has prompted the EC to decrease export refunds significantly over the past year.

 

Pig production is reaching a low in 2005 in the EU, especially in the EU-15. Most new member states, except Hungary and the Slovak republic, are increasing production. 

 

However, pig production is expected to increase again throughout the EU in 2006, except in the Benelux and Italy. As a consequence of high pork prices, there is a decrease in consumption in the new member states and, to a lesser extent, in the EU-15. 

 

Exports of EU pork, predominantly to Japan and Russia, are expected to remain stable. 

 

In 2006, EU pork production is expected to increase again, which will presumably lead to an increase in domestic consumption and a further slight increase in exports.

  

For the full USDA report, click here

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