November 27, 2006

European beef herd falls as subsidies end

Despite the high price of beef, the number of cattle in most EU countries has been declining a year after direct subsidies ended in most countries.

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. Ireland has plans of instituting a similar direct subsidy next year, even though EU rules would seem to forbid such an action.

While in most countries the number of specialist beef cows has been falling, in France, it has increased, according to the Meat and Livestock Commission.

In Germany, the total cattle herd, beef and dairy, is down 3 percent to 13 million. The UK saw a 3 percent decline to 1.7 million beef cattle. But in France the beef herd rose 1 percent to more than four million, according to "The Scotsman" reports.

However, the number of cattle slaughtered for consumption would rise 2 percent this year, and even more next year, as the EU Council of Ministers is expected to approve a move to allow slaughter and export of meat from animals up to 36 months in age, rather than the present 30 months.

The UK, which only recently received permission to export beef to other EU countries, has retained a large number of heifers, despite the overall herd decline, presumably to increase herd size if prices increase enough to support the additional production.

Though census data was not available for the Irish Republic, beef production is said to have been in decline.