Farming News - European meat production set to fall on reduced demand

European meat production set to fall on reduced demand

The European Commission has announced that meat production in the bloc is set to decrease by 1.1 per cent in 2012, reflecting a decline in consumption in Europe. It also predicts a smaller decline in 2013.

 

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The Commission said in its Short Term Outlook for February that despite a promising global market situation, consumption of all meats save for poultry is dropping off across the continent. The report also predicted price increases sparked by rising input costs, particularly feed costs, would also impact on the meat sector.

 

In contrast to the UK government’s projections, the EU said poultry would remain resilient as its popularity grew in 2011 thanks to its healthy image and the fact that most poultry is relatively inexpensive. The EU report predicts a 1 per cent decline for the pig sector this year, as falling profitability and rising input costs may become untenable for some producers.

 

The commission did, however, suggest that export markets for EU meat would continue to prove lucrative, following on from 2011, which was a good year for exporters. The UK government has pledged to help farmers in the country find new third country export markets to stimulate growth.