Brussels, 17/01/2005 (Agence Europe) - On Monday the European Commission published its report on "Prospects for agricultural markets in the European Union 2004-11". The Commission is expecting a "moderately positive" development for cereals (apart from for barley); meat; milk and dairy products thanks to CAP reform in June 2003 and good price conditions on world markets.
The report also demonstrates the positive effects on EU markets of enlargement with the addition of the new member states in May 2004. According to the Commission, EU agricultural income is as a consequence expected to increase by 14.2% between 2003-11. In the new Member States, agricultural income is expected to double between 2003-11, as opposed to an increase of only 5% on average in older Member States. In 2004, new Member States provided 20% of the total production for cereals, 17% for oilseed production, 10 to 17% of meat production and 15% of mil and dairy produce. The Commission says that if this enlargement had not taken place, EU15 agricultural production would have begun to decrease slightly from 2006 (the report is available at the following address: http://www.europa.eu.int/comm/agriculture/publi/caprep/prospects2004b/index_en.htm ).