Common Agricultural Policy - UK Food Group

The Common Agricultural Policy 10
Beef and veal
There has been an excess of supply over domestic
consumption for many years and strong reliance on export
subsidies eg for exports to the Russian Federation and the
Middle East. In 1998 total EU beef and veal production was
down by 3.4 per cent but still accounted for about 14 per
cent of world production. The per capita consumption of
beef and veal in the EU fell in 1996 with the BSE outbreak
and subsequently exports have been substantially affected
(fig 1.8).
Pigmeat
In 1998 the world’s leading producer of pigmeat was China
with output totaling 36.9 million tonnes, followed by the EU
with 17.6 million tonnes, which was an 8.2 per cent
increase on 1997. Production has been increasing in recent
years and consumption has not declined due to food
scares, as it has for beef. There is some production surplus
but several EU countries, including Denmark are
competitive exporters. The level of CAP subsidy in the
sector is very low. The most important destinations for EU
export in 1998 were Russia (335,000 tonnes), Japan
(175,000 tonnes) and Hong Kong/China (145,000 tonnes).
In 1998 35 per cent of exports qualified for export refunds
due to depressed world prices relative to the EU but this
varies – in 1997 for example the figure was only 18 per
cent (fig 1.9).
Sheepmeat and goatmeat
Production of sheepmeat in the EU is heavily concentrated
in a few Member States, notably the UK, Ireland, Spain,
Greece and France. EU production has been steady or
slightly declining through the 1990s mainly due to declines
in flocks in certain Member States, particularly France.
Most trade in sheepmeat is between the EU countries
(including exports from the UK and Ireland) but there are
significant imports from outside the EU, mainly from New
Zealand. These imports traditionally complement the
seasonality of lamb production in filling a gap in the market
when EU lamb is less readily available. Exports are
negligible (fig 2.0).
After China the EU is the world’s second largest producer
of sheepmeat and goatmeat. The EU is also the second
largest consumer after China. EU imports are carried out
under WTO tariff-free or reduced-tariff quotas together with
additional quantities provided in specific trade agreements.
New Zealand is the world’s main exporter and is generally
close to its EU tariff-free import quota of 226,700 tonnes.
Australia is the second largest exporter to the EU but at a
much smaller level of around 19,000 tonnes.
There are major imports of several other commodities,
including: 7
•Proteins and animal feed
•Tropical produce
•Fruit and vegetables.