EU 'short of options' on meat supply

Marcus O’Sullivan, director of JBS Global UK - the world’s biggest meat conglomerate - said EU beef prices were generally way ahead of global prices and most of the growth in meat was being seen in developing countries.

The largest commercial cattle herds were in Brazil, China and the USA respectively but in production terms, the USA, Brazil and the EU currently made up half the world production of beef. But the EU was a net importer and would remain so with increasing demand and reducing supply.

The worrying question was, where would future additional supplies come from, said Mr O’Sullivan. The EU was desperately short of options.

While Brazil was a low cost producer and could deliver striploins to a UK port at £3.65/kg, duty rate tax at 12.8 per cent and a flat rate levy of £2.75, served to almost double the cost to £6.87 - almost half of it going into the EU’s coffers.

While the USA had for a long while been out of the equation, not least on account of hormone use in its finishing herds, it had now to be recognised as a contender.

Mr O’Sullivan noted that the EU had agreed to a 20,000 tonne import quota of hormone-free beef, increasing to 45,000 tonnes in two years.

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