Brussels, 09/05/2016 (Agence Europe) - Copa-Cogeca have urged EU Commission to exercise caution in free-trade talks between the EU and US (TTIP) after a new study revealed that the deal could have a negative impact on EU beef sector.
Jean-Pierre Fleury, who chairs the Copa-Cogeca beef working party, said on Wednesday 4 May that prices are continuing to drop in the EU beef sector. Beef production rose by 3.6% in 2015 due to the continued pressure on the dairy sector with producers switching from dairy to beef production, which is resulting in extra supplies on the market. Beef producers fear further downward pressure on prices in the short-term. Fleury argued that the only possible tool here is export credit guarantees.
A new study carried out by the French Livestock Institute confirms that classifying beef as a sensitive product in the TTIP negotiations is justified, Fleury stressed. In the market access offers exchanged in October, 97% of tariff lines were included in the offer and 3% in the “other treatment” category which includes beef, poultry and pork.
With regard to high value cuts, such as loin cuts, the US beef sector remains more competitive due to economies of scale (feedlots), different environmental practices and manure management, different animal welfare and health standards, and the fact that there is no compulsory traceability system, Copa-Cogeca says. European standards in this respect are very high and imports to the EU are not required to comply with them. “Loin cuts nevertheless represent the main source of income for our beef producers. Without a cautious approach in TTIP, this type of production could be badly hit, with a negative impact on the economies of rural regions”, Fleury argues. The above study confirms a potential drop in the incomes of specialised French beef producers of up to 40-50%. (Original version in French by Lionel Changeur)