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EU Sheep Meat Production to Fall

07 October 2014

EU - A marginal reduction in EU sheep production was forecast for 2014 at the recent European commission working group for sheep meat, which is expected to help prices, writes Eoin Kelly, Business Analyst at Bord Bia-Irish Food Board.

Sheep meat output in the EU is forecast to contract by just under one per cent in 2014 to approximately 916,000 tonnes, with most countries indicating a further decline in supplies for 2015.

This decline in production is being largely driven by lower output in France, Spain and Germany.

French production is expected to be down 2.5 per cent with some recovery next year.

However, increased UK and Ireland production is set to offset this decline somewhat.

Some further, albeit slower reduction in output is forecast for 2015.

The reason for this is the declining breeding flock across a number of key producing countries such as Spain and Germany, with Spanish production set to decline a further 9 per cent in 2015.

However, this is set to be offset somewhat by a modest rise in production in France, the UK and Ireland due to increases in the breeding flock.

EU exports of sheep meat and live animals continue to increase with exports up 34 per cent to 74,467 tonnes in carcase weight equivalent in 2013.

For the year to date exports are up over 20 per cent, standing at 46,661 tonnes. Libya continues to be the main destination closely followed by Hong Kong, combined these accounted for over 60 per cent of exports.

Other destinations include Switzerland and North African countries such as Jordan, Lebanon and Algeria.

Higher imports were recorded into the EU in 2013, with shipments five per cent higher at around 212,000 tonnes.

New Zealand is the source for around 84 per cent of these imports, with Australia accounting for approximately 10 per cent of imports.

For January to July this year New Zealand imports are down seven per cent to around 118,000 tonnes.

However this reduction in New Zealand product has been compensated somewhat by an increase in Australian imports in the region of 22 per cent, and an 11 per cent increase in imports from Chile.

Looking ahead to 2015, the EU will continue to remain a net importer of sheep meat. It is hoped that a modest reduction in output, a strong live trade and a forecast drop in New Zealand output will help price levels.

eu sheep meat prodyuction

TheMeatSite News Desk

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