November 22, 2004

UK Beef Imports Expected to Increase on Higher Demand

Latest European Commission figures estimate the UK cattle herd will decline by a further 100,000 head to 10.45 million by June next year. This is due to producers trying to catch the last of the market subsidies by taking more cattle to market in the run-up to the new year.

But this is not expected to match increased demand with domestic consumption standing 1.19 million tons, reaching the highest level in 15 years.

There is major concern whether the government will allow cattle aged over 30 months to re-enter the food chain. Food standards agencies in Britain and the European Union have given the approval, but UK health ministers are still considering their options. In the absence of an immediate rule change, the EU Commission expects to see steers slaughtered at an earlier age to meet demand.

But 2005 beef consumption is forecast to rise to 1.2 million tons in the UK, giving an import requirement of 510,000 tons which is an increase of 20,000 tons. This means there will be a lot more South American beef on the UK market, both at retail and catering levels.