December 8, 2015

Poland close to becoming Italy's biggest beef supplier

Italy may - in the near future – find its biggest beef supplier in Poland, according to the UK's Agriculture and Horticulture Development Board (AHDB).

The possibility of this scenario stands in the face of the current lows in demand and consumption in Italy: as the country looks to cheaper sources for beef, Poland gains but at a mild 1% year-on-year increase during January – August 2015. In the years before, growth was reportedly more significant.

Nevertheless, Poland will continue to witness more deliveries to Italy, having now achieve a 19% in market share, AHDB said. The percentage closely trailed the 21% share of France, as well as demonstrating a huge leap from Poland's previous 6% share a decade ago.

On the other hand, Italian imports from other nations did not perform relatively well.

As beef products entering the country saw a 5% drop in the first eight months of this year, France and Germany – both suppliers of young bull beef to Italy – were seriously affected.

Ireland's shipments also suffered, falling by close to 20% as its exporters shifted more attention to northern member states. UK deliveries also underwent a similar dip, although this is not of notable consequence since its market share in Italy is just 1% compared to Ireland's 6%. 

While Italian households' overall purchase of beef and veal could have fell by 6% in the first nine months of this year, an improving economy, low inflation, rising employment and tax cuts would soon reverse this trend if realised, AHDB noted. These will in turn benefit the EU beef market as Italy, the biggest beef importer in the EU bloc, might see more stabilised imports in 2016.