Brussels, 10/03/2011 (Agence Europe) - In a press release published on Wednesday 9 March, COPA-COGECA express their serious concern that European livestock producers are experiencing major difficulties and are being squeezed by higher input costs and low prices. They urge the Commission to ensure the EU food chain works better. The agricultural organisations point out that the market is becoming increasingly volatile and that producers' input costs - fertilisers, fuel and feed - have risen sharply recently, reaching untenable levels. Imports from non-EU countries are increasing and they do not face the same production costs or meet the EU's high food safety, welfare and environmental standards. For example, production costs in the beef sector in Brazil (€81/100 kg liveweight) are nearly one third of the level of those found in Italy (€233/100 kg liveweight). In France, they reach €221/100 kg liveweight, compared to just €73/100 kg live weight in Argentina.
On the other hand, the price the producer receives for his produce has meanwhile not risen by the same amount, sometimes not even covering production costs.
According to the Commission, an EU-Mercosur agreement will not destroy the European beef sector. On Tuesday, 8 March, a spokesman from the European Commission dismissed as exaggerated the claims made by COPA-COGECA, that a free trade agreement between the European Union and Mercosur would destroy the European beef sector.
With a few days to go until the new round of negotiations in Brussels with Mercosur countries (Brazil, Argentina, Uruguay and Paraguay - Venezuela is currently in the stages of joining), certain European livestock producers are fearful of the possible consequences of such an agreement on beef sales. These products are a flagship product of Mercosur countries. Whilst recognising that certain environmental and animal welfare standards are higher in the EU than in Mercosur countries, EU trade spokesperson John Clancy argues “rather than entirely prohibiting imports from regions with different standards, we should increase the awareness of consumers about these differences”. He adds: “It is important for European farmers to recognise that the EU common agricultural policy is there to support them with funding and to cover the higher costs, which are also due to the high level of environmental and animal welfare standards that exist in the EU”. Negotiations with Mercosur were launched in May 2010. They will be resumed from 14 to 18 March in Brussels. A new round is programmed for 2-6 May in Paraguay. (L.C./transl.fl)