Market Trends of europe edible meat Industry
Despite the Russia-Ukraine conflict, Russia remains a major beef producer in the region
- In 2022, beef production in Europe declined by 0.51% compared to the previous year, owing to reduced pricing and herd reductions. Russia, France, and Germany accounted for roughly 40% of the beef produced in Europe. The European Commission has plans to use public intervention to support beef prices if the average market price of beef in an EU country or region drops below USD 2,416 per ton over a selected period. The European Commission may provide grants for private storage aid if there is a drop in average prices or a substantial change in production costs, another factor that causes significant changes in margins damaging to the industry. The EU also supports beef farmers through specific exemptions for producer organizations in the beef industry.
- Russia was the major beef producer in the region in 2022, with a share of 15.96% in 2022. This growth was facilitated by exceptional measures taken by the state to support the industry. Some of the measures include reimbursing livestock breeders for the costs of their production, purchasing young animals, technological modernization of facilities, and improving work in the field of livestock breeding. Producers are offered loans for the purchase of fodder, equipment, veterinary drugs, and the construction and modernization of livestock facilities.
- The Netherlands had the lowest production of 429,640 tons in 2022. The Dutch national cattle inventory has constantly declined in the last three years due to the exceeding EU pasture phosphate limits. In 2022, beef cattle numbers declined by 8.4% to 3,690,000 heads. The government has been trying to reduce emissions through a decrease in livestock farming, which negatively impacts the country's beef industry.
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Increasing cost of feed and decline in slaughter of variants of cows are leading to price fluctuations of beef in the region
- During 2019-2022, the price of beef grew by 5.34% due to supply chain disruptions that caused a rise in wholesale beef prices while cattle prices remained low. The whole service sale of beef recovered due to a rise in foodservice sales, even of premium cuts, leading to a 3% rise in total consumption. In 2021, the decline in suckler cows, which are bred for terminal beef, by 245,000 heads (-2.3%) led to increasing beef prices. Inadequate facilities, hygiene measures, and improper handling of the animals at the slaughterhouses further aggravate the microbial contamination of beef, which can result in the transmission of foodborne pathogens to humans
- The rising feed costs also contributed to the increase in beef prices by 26% during the first quarter of 2022. High input costs, particularly for feed, may result in additional slaughtering and lower carcass weights, primarily on intensive cattle farms where feed costs will have a greater impact on farm profitability. Due to the rising food and meat prices, the region's beef consumption decreased to 10.3 kg per capita in 2022 (-0.3%). This trend was likely to continue in 2022, reaching -0.9% in the overall context.
- Owing to very high food price inflation during 2021-2023 in Europe, consumer demand for meat has been consistently declining, coupled with higher awareness about individual health and the environment. Due to the high prices and declining demand, beef production across many countries in Europe observed a decline. For instance, in 2022, Italy saw a production slump of 20%, followed by Spain and Germany reporting falls of 6% and 1%, respectively. France recorded a 1% increase in production, while the Netherlands recorded an increase in beef production by 9%.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising input costs due to higher feed costs and inflation are leading to a spike in the price of mutton in the region
- Higher production costs and supply disruptions due to the Russia-Ukraine conflict are leading to price growth
- Pork production in the region is recovering with growing demand and supportive government initiatives
- Feed supply disruptions are inflating production costs
- Diversification in the region's population is anticipated to propel the production
- Higher production costs and various disease outbreaks are hindering the poultry production
