November 21, 2006

France's unique direct subsidy delivers growth in beef herd

France was the only EU country to retain a direct subsidy for each beef suckler cow when the common agricultural policy was reformed last year.

In most other EU member states, direct subsidies worth in total more than GBP300 (US$569) per cow were absorbed into the single annual farm payment.

This has led to a fall in number of specialist beef cows in most countries, with France being an exception where it increased by 1 percent to 4 million according to Meat and Livestock Commission.

Germany recorded a decline of 3 percent in the total cattle herd, beef and dairy while the UK had a second consecutive annual fall of 2 per cent, with beef breeding cows down 3 per cent to 1.7 million, although the number of heifers retained for future breeding remained unchanged. That indicates a possible recovery provided market prices continue to improve.

In almost another world, beef production in Ireland, still a vital part of the national economy employing about 60,000 farmers has seen average herd size 16.6 cows to be declining. The Irish government last month announced a premium of US$100 (GBP67.80) per cow to be paid next year in an attempt to counter the situation.

In spite of national declines, the European Commission (EC) forecasts the number of cattle slaughtered this year to increase by 2 per cent as a result of the reintroduction to the human consumption market in early summer of cattle over 30 months old.

The end of the anti-BSE slaughter-and-incinerate scheme would, as forecast, increase the UK cattle kill to 2.67 million, up about 12 per cent on 2005. Slaughtering in other EU countries could also increase.