Prospects for EU meat moderately positive

by Editor
Thursday, April 09, 2009

According to a new report from the European Commission, Prospects for Agricultural Markets and Income in the European Union 2008-2015, the agricultural sector is more resilient to economic crises than other sectors.

Still it is expected to face great challenges, especially in demand growth and farm income, which may continue to exert strong pressure on agricultural prices and trigger significant structural adjustment.

Agricultural commodity markets are projected to recover over the medium term supported by structural factors like the growth in global food demand, the development of the biofuel sector and the long-term decline in food crop productivity growth.

In 2008 total meat consumption fell considerably to 85.1 kg/capita (-2.2% from 2007) as a likely consequence of high prices and low availabilities. A further, albeit slight, decline could take place in the short term as a consequence of economic recession. However the medium-term prospects for the EU meat sector appear moderately positive with increased production and consumption of poultry and pig meat, while production of beef and sheep/goat meat are projected to decline further. As demand growth would outpace the increase in total meat production, that is to expand by 2.1% over the projection period, the net exporting position of the EU would show continued weakening.