September 28, 2012

EU beef exports down 41% on-year in Jan-July 2012

During the first seven months of this year, beef exports from the EU fell by 41% on-year, totalling 113,856 tonnes.

EU beef exports spiked in 2011, as a weak euro and strong international demand, in particular from Turkey and Russia drove exports higher. However, a reduced supply of EU beef so far in 2012, combined with reduced demand in several markets has hit export volumes this year.

Russia was the largest export market for EU beef in the seven months to July, despite shipments to the region being down 34% on-year, totalling 28,006 tonnes. Exports to Turkey, the EU largest export market in 2011, fell 71% on-year for the period, to 25,683 tonnes, as the Turkish Government changed tariff regimes to favour live cattle imports over beef.

Beef imports in the EU have declined 5% on-year over the same period. Although a higher percentage of domestic production is available on the domestic market as a result of lower exports, beef production in the EU throughout 2012 is forecast by the European Commission to be 4% lower on-year. This will ultimately lead to tighter supply on the EU market, as the decrease in exports will fail to cover the shortfall in domestic production and imports.