European Union: Livestock and Products Semi-annual

  |   Attaché Report (GAIN)   |   E42022-0012

Both EU beef and pork production are forecast to decline in 2022. The lower domestic beef production is caused by a shrinking dairy herd with higher milk deliveries but a lower output of animals for slaughter. Whereas the contraction of the beef cow herd is based on structural unprofitability of the sector. The recent price hike is not expected to curb the trend of declining beef production. It is anticipated that only a sustained and structural price increase for beef and dairy products or financial support can change the overall trend of a contracting herd. EU pork production is forecast to fall based on slowing Chinese demand combined with rising feed costs. Despite this, due to stock building during 2021, the EU is anticipated to be able to maintain (or even increase) its pork export levels in 2022.

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