EU red meat production to fall below consumption

by Editor
Thursday, August 23, 2007

EU beef and sheepmeat production will fall below domestic consumption.

This has been predicted by the European Commission’s Directorate General for Agriculture and Rural Development revising agricultural market forecasts (EU Market Survey).

The decrease in production is primarily attributed to the impact of decoupling, particularly of ewe premiums and a structural reduction of dairy herds.

EU beef and veal production is expected to fall approximately 1% each year until 2014, while consumption is expected to decline at a slower rate.

Similar to beef, sheepmeat consumption is also expected to fall, with the rate of decline to be less than the slowdown in production.

Reports indicate that imports of beef and sheepmeat will therefore need to increase in order to meet domestic demand.