September 7, 2009

EU beef imports increased 12 percent on-year to 116,340 tonnes swt during the first of 2009.

The growth was mainly due to higher shipments from Argentina, Uruguay, Australia, New Zealand, the US and Namibia. Argentina in particular had higher supplies and the government there had eased its export restrictions during the period.

In contrast, the EU imported less Brazilian beef over the period due to ongoing concerns of foot-and-mouth disease, and food safety and traceability issues. The number of Brazilian farms approved for exporting to the EU has slowly increased to more than 1,300 farms, though Brazilian beef supply has been tight since late 2007 due to high cattle slaughter in previous years.

Average import prices eased 25 percent over the first six months of 2009 after peaking at US$9,730 during the first half 2008.

In addition to the decline in imported beef prices, cattle prices in the EU's major producing states are lower year-on-year despite tighter supplies than a year ago, the result of reduced beef demand.

This trend has especially been noted in Ireland, where cattle prices have dropped three percent despite a 14-percent reduction in steer slaughter.

Though imports are recovering from last year's low level, they remain 35-percent below volumes in 2005.