Italy reports the largest drop in beef production
According to the European Commission, the EU produced 2.7 million tonnes of beef in the first five months of 2020, down 5% (145,000 tonnes) on year-earlier levels. An accentuated decline was seen in April and May (-13%), likely due to coronavirus-induced disruption of supply chains. Production was lower across nearly all countries, including major producers such as France and Germany. The largest decline in production during the period was in Italy, which produced 50,000 tonnes (16%) less beef than the same period last year., most probably due to strict lockdown measures put in place. "Lower production has largely been matched by a fall in exports from the bloc, which for the five-month period were down 4% compared to 2019 at 282,300 tonnes. A fall in shipments to the UK was the main driver of export decline, primarily in volumes sent from the Republic of Ireland. EU shipments to several smaller destinations grew, including China, Canada and Japan, but not by enough to offset the loss to the UK," commented AHDB analysts.
At the same time, lower imports from the UK have impacted the beef volumes arrived in the EU market, along with less product received from South America, particularly during April and May.
"China has been drawing more product from the key South American exporters (Brazil, Argentina, Uruguay), which may have limited volumes into the EU," according to AHDB. Lower import demand due to disrupted domestic demand may also have contributed to a decline of 21% in beef imports from third countries.
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