August 24, 2007

EU red meat production seen to drop below consumption

Beef and sheepmeat production in EU is predicted to fall below domestic consumption due to decoupling of ewe premiums and reduction of dairy herds, a revision of agricultural market forecasts by the European Commission's Directorate General for Agriculture and Rural Development show.

EU beef and veal production is expected to fall approximately 1 percent yearly until 2014, while consumption is expected to decline at a slower rate. Similar to beef, sheepmeat consumption is also expected to fall, albeit on a lesser rate, on production slowdown. Reports indicate that imports of beef and sheepmeat will be significant in the coming months to meet domestic demand.