The EU agri-food sector is confronted with the surge in commodity prices, notably due to the recovery of the EU, US and Chinese economies, according to the Short Term Outlook for EU Agricultural Markets published by the European Commission on Friday 8 October.
EU cereal production is on the rise, with a projection of 294.8 million tonnes for 2021/2022, a 5% increase compared to last year, according to the forecast. European sugar beet production could reach 113 million tonnes (+13.6%). “Arable crop farmers should be able to absorb higher input prices”, the Commission said.
Milk. EU milk collection is projected to grow by 0.3% in 2021. The dairy herd is expected to decline by 0.9%.
Meat. EU beef production is expected to fall by 0.5% in 2021 (due to a reduction of cow herd coupled with lower demand in food service).
Exports to high-value markets (Japan, Norway, Hong Kong) are increasing, which should lead to an overall increase of 2% in beef exports in 2021.
The EU pigmeat market is facing difficulties, due to a significant increase in production (+4.1%) in the first half of 2021, combined with a demand slowing down. “This led to falling prices, when producers are faced with high costs”, the Commission explains.
The poultry sector is also going through a challenging situation. Production is expected to decline by 0.9% in 2021. EU exports are down by 5% in 2021.
Finally, EU sheep and goat meat are facing supply shortages both at European and world level, leading to high prices.
Link to the document: https://bit.ly/2YBpE6r (Original version in French by Lionel Changeur)