2022 EU red meat growth prevented, says European Commission

2022 EU red meat growth prevented, says European Commission

A report by the European Commission (EC) has found that EU red meat production, including pigmeat processing, had limited growth over the summer due to high input prices and African Swine Fever (ASF).

According to the EC’s autumn short-term outlook, EU beef production is expected to decrease by 0.6% in 2022, mainly due to a structural adjustment in the beef and dairy sector despite high beef prices.

Due to record-high domestic prices and despite good export prospects to some existing high-value markets, the EC said that EU exports should still decrease by 1%. However, EU imports from the UK and Brazil are on the rise.

Similarly, EU pigmeat production in 2022 is anticipated to decline by 5%, with sustained high feed costs as well as ASF continuing to prevent EU pigmeat production growth, according to the EC.

EU poultry production growth continues to be limited by high input prices, particularly with feed and energy, and avian influenza. In addition, EU poultry prices increased by 27% year-on-year, meaning there is relatively less competitive exports. However, the EC’s report added that the suspension of duties on products coming from Ukraine has helped poultry imports.

Despite the thinner EU sheep and goat flocks, slaughterings are not expected to decline in 2022, says the EC. EU imports should resume in 2022, increasing by 10% and a further anticipated 4% next year. These figures are still below pre-Covid levels, leading to sustained high domestic prices, however it concluded trade should further resume in 2023.

The report said that EU consumer prices for food in August 2022 increased by 14.3% year-on-year.

It added: “High energy prices and agri-food trade disruptions caused by Russia’s invasion of Ukraine exacerbate inflationary pressures throughout the supply chains, although in some sectors and some EU countries effects might be witnessed with time-lag.”

Previous / Next posts...

Submit a Comment

Your email address will not be published. Required fields are marked *