At the second meeting of the EU Meat Market Observatory on 27 October, European experts were somewhat concerned at developments in the beef sector, reveals the report of the meeting published by the European Commission on Thursday 17 November
For beef and veal, discussions showed that the market faces tensions resulting from an increase in slaughtering linked to the current difficulties of the milk and dairy sector. The increase in the production, mostly as a consequence of the destocking of dairy cows, puts pressure on prices to suckler cow producers, affecting their financial situation. This price pressure will most likely continue in the coming months. Fortunately exports, particularly of live bovines, are performing well and production costs (mainly animal feed) are quite low.
The outlook for pigmeat is more positive, although the experts show only moderate optimism. The domestic market is supporting reasonable prices and the exceptionally good export situation is contributing to a re-balancing of the market. The experts are concerned, however, at the high dependence on exports to China. China accounts for almost half (47.7%) of sales, up 97% on the first eight months of 2015.
The next meeting of the EU Meat Market Observatory is scheduled for 16 March 2017. (Original version in French by Lionel Changeur)