December 17, 2010

EU beef prices forecast to rise in 2011

Beef prices in the EU are expected to increase in 2011 due to steady beef demand, reduced beef production, and constrained imports.

Total beef production in the EU15 zone is forecast to decrease by 2% in 2011, to 7.1 million tonnes, according to the European Beef Forecasting Working Group.

The decrease in EU15 beef production in 2011 will be mostly influenced by less output among major suppliers, such as France, Germany, and the UK. However, Spain is one nation expected to increase total production because of increased live cattle imports being processed.

Stable European demand in 2011 is expected to contribute to higher beef prices, as total supplies continue their long term decline.