August 6, 2009

UK beef production is set to remain tight for the rest of the year and into 2010, with lower cattle numbers and fewer imports helping to shore up prices.

Recent figures from Agriculture and Horticulture Development Board's (AHDB) Cattle Market Outlook suggest that domestic production will fall slightly to 860,000 tonnes this year. But, in part due to the high number of potential breeding stock being sent to slaughter, a much steeper drop follows to just 832,000 tonnes next year.

Imports are also on the wane, with supplies from Brazil in particular feeling the effects of the EU's restrictions.

Despite suggestions in May by the Brazilian agriculture minister that shipments could reach 50 percent of pre-2007 levels by the end of this year, the AHDB says there is no prospect of Brazilian beef imports recovering much this year or next.

So far this year Brazil has exported just 1,100 tonnes to the UK, compared with 4,500 tonnes in the first half of 2008 and 1,600 tonnes in the first half of 2007.

A recent report by EU Commission inspectors revealed continuing failures with regards traceability and movement controls, even on some of the 1,200 Brazilian farms now cleared to resume exports.