Review of the situation on the EU Beef and Veal Market

"Single CMO" Management Committee

20 January 2011

Review of the situation on the EU Beef and Veal Market

DG AGRI, European Commission – 20 January 2011 7

Percentual change in Adult Cattle SlaughterPeriod: Jan - November Year: 2010 / 2009

-25,0%

-12,5%

0,0%

12,5%

BEBG CZ DK DE EE EI EL ES FR IT CY LV LT LUHUMT NL ÖS PL PT RO SI SK SF SEUK EU


Change in Adult Cattle Slaughter(Bulls, Bullocks, Cows & Heifers)

Jan. - Nov. 2009 / 2010

0,000

200,000

400,000

600,000

800,000

1000,000

BE BG CZ DK DE EE EI EL ES FR IT CY LV LT LU HU MT NL ÖS P L P T RO SI SK SF SE UK

in T

on

n

Heifers

Cows

Bullocks &Bulls


Change in Veal Slaughter(Calves & Young Cattle)

Period: Jan - November Year:2009 & 2010

0,000

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

BE BG CZ DK DE EE EI EL ES FR IT CY LV LT LU HU MT NL ÖS PL PT RO SI SK SF SE UK

Sla

ug

hte

r in

To

nn

Young Cattle

Calves


EU exports of beef and live animals (1):Trade figures (COMEXT – tonnes cwe)

DestinationsDestinationsCompared

tonnes % tonnes % tonnes % tonnes % tonnes % to Jan-Nov 09

Russia 145 383 45.6% 87 277 35.2% 102 347 35.1% 50 881 20.4% 122 636 29.3% + 161.4%

Turkey 974 0.3% 214 0.1% 204 0.1% 571 0.2% 41 785 10.0% +++

Lebanon 4 823 1.5% 3 647 1.5% 5 619 1.9% 7 838 3.1% 31 070 7.4% +++

Croatia 18 907 5.9% 16 460 6.6% 19 917 6.8% 25 126 10.1% 21 188 5.1% - 9.2%

Sw itzerland 10 162 3.2% 14 457 5.8% 25 968 8.9% 19 072 7.7% 21 009 5.0% + 17.2%

Algeria 9 467 3.0% 1 674 0.7% 1 689 0.6% 6 681 2.7% 15 201 3.6% + 143.2%

Ivory coast 4 938 1.5% 6 941 2.8% 8 969 3.1% 13 404 5.4% 13 041 3.1% + 7.6%

Angola 8 628 2.7% 11 087 4.5% 7 775 2.7% 7 483 3.0% 4 961 1.2% - 28.2%

Nigeria 172 0.1% 16 174 6.5% 2 265 0.8% 166 0.1% 101 0.0% - 39.0%

EXTRA EU 25/27 318 927 247 722 291 601 249 165 418 054

% change - 22% + 18% - 15% + 84.2%

2006 2007 2008 Jan-Nov 102009


EU exports of beef and live animals (2):Trade figures (COMEXT)

EU EXPORTS of Beef & Veal ( 1000 EUR)

195 097118 097

247 250337

1 128

144 010

13 66321 408

97 566

5 41829 737

64 00886 262

233 704243 270

331 165

596 949559 521

1 045 110

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

J an- Nov 08 J an- Nov 09 J an- Nov 10

1,

00

0

EU

R

Russi a Tur key LebanonCr oat i a Al ger i a Swi t zer l andOt her dest i nat i ons

EU EXPORTS of Beef & Veal ( Tonnes cwe)

96 73546 907

122 636

198

417

41 785

5 278

7 228

31 070

1 359

6 251

15 20121 009

123 654

124 911

165 166269 825

226 985

418 054

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000


To

nn

es

c

w

Russi a Tur key LebanonCr oat i a Al ger i a Swi t zer l andOt her dest i nat i ons


Exports of BEEF products

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

|J an06

2006 |J an07

2007 |J an08

2008 |J an09

2009 |J an10

in Tonnes cwe

LI VE ANI MALS FRESH FROZEN PREPARED OTHERS


EU exports of beef and live animals (3):Licence applications for exports with refunds (tonnes cwe)

0

20000

40000

60000

80000

100000

Live animals Fresh beef Frozen beef Offal Tinned beef

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

0%

20%

40%

60%

80%

100%

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Live animals Fresh beef Frozen beef Offal Tinned beef

Evolution per category (tonnes cwe)Evolution per category (tonnes cwe) Evolution in export structure (% share)Evolution in export structure (% share)

Live animals

Fresh beef

Frozen beef

OffalsTinned

beef Total

9.253 20.385 4.949 0 936 35.523

17.113 103.814 38.075 0 0 159.002

%share 10,8% 65,3% 23,9% 0,0% 0,0% 100,0%+84,9% +409,3% +669,3% -100,0% +347,6%

Jul 10 - Dec 10

% chg /prev.per

Jul 09 - Dec 09


EU imports of beef and live animals (1):Trade figures (COMEXT – tonnes cwe)

OriginsOriginsCompared

tonnes % tonnes % tonnes % tonnes % tonnes % to Jan-Nov 09

Brazil 331 762 64.7% 363 839 65.4% 171 454 43.4% 149 007 34.6% 134 112 38.2% - 0.3%

Argentina 82 865 16.1% 97 656 17.6% 92 924 23.5% 122 494 28.4% 74 164 21.1% - 34.1%

Uruguay 45 350 8.8% 39 544 7.1% 66 402 16.8% 79 144 18.4% 61 184 17.4% - 16.1%

Botswana 7 118 1.4% 13 929 2.5% 10 395 2.6% 11 452 2.7% 14 641 4.2% + 49.3%

USA 956 0.2% 2 746 0.5% 6 547 1.7% 9 609 2.2% 13 823 3.9% + 64.2%

New Zealand 7 195 1.4% 5 756 1.0% 12 455 3.2% 15 783 3.7% 13 144 3.7% - 13.5%

Namibia 8 063 1.6% 10 467 1.9% 10 348 2.6% 12 457 2.9% 13 141 3.7% + 9.7%

Australia 12 366 2.4% 10 019 1.8% 12 957 3.3% 16 937 3.9% 11 617 3.3% - 26.0%

Switzerland 1 979 0.4% 2 855 0.5% 2 919 0.7% 4 394 1.0% 3 969 1.1% + 3.4%

Chile 2 036 0.4% 2 844 0.5% 2 550 0.6% 3 158 0.7% 2 221 0.6% - 28.5%

Serbia 1 912 0.4% 2 324 0.4% 1 784 0.5% 990 0.2% 1 031 0.3% + 14.5%

EXTRA EU 25/27513 160 556 024 395 063 431 182 350 763

% change + 8% - 29% + 9% - 11.0%

2006 2007 2008 Jan-Nov 102009


EU imports of beef and live animals (2):Trade figures (COMEXT)

I MPORTS of Beef & Veal i nt o EU ( Tonnes cwe)

160 736 134 539 134 112

84 161 112 55374 164

61 682 72 899

61 184

41 20350 409

54 335

365 455394 005

350 763

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000


I nTonnes

cwe

Br azi l Ar gent i na Ur uguay

USA New Zeal and Ot her dest i nat i ons

I MPORTS of Beef & Veal i nt o EU ( 1000 EUR)

467 244 387 950 446 042

514 371466 036 428 761

287 941

253 585 240 127

164 620

192 703 230 572

1 407 667

1 531 7911 481 334

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000


i n 1000EUR

Br azi l Ar gent i na Ur uguay

USA New Zeal and Ot her dest i nat i ons


I mpor t s of BEEF product s

0

10 000

20 000

30 000

40 000

50 000

60 000

|J an06

2006 |J an07

2007 |J an08

2008 |J an09

2009 |J an10

in Tonnes cwe

FRESH FROZEN PREPARED OTHERS


452403

446401

436 429398

491513 529

565513

556

395431

351

1 263

1 1711 120

825

1 028

736

598 598

481455

352

292248

292249

418

0

200

400

600

800

1 000

1 200

1 400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 J an-Nov 10

1000 Tonne

I MPORTS EXPORTS

EU net import of beef and live animals?


Source : GTA Excluding live animals (0102), fats, preparations of several types of meat (0209, 0210 99 and 1602 90)

* EU was the 11th biggest importer of Beef products in 2009

Main Exporters of BEEF Products (up to Nov) - Monthly figures

Un

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d S

tate

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Un

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d S

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Au

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(u

p t

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Au

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(u

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10

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Bra

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Bra

zil

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ea

lan

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Ca

na

da

(u

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10

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Ca

na

da

(u

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Arg

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up

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Arg

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up

to

Oc

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Ind

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up

to

Ju

n 1

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Ind

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up

to

Ju

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0)

Pa

rag

ua

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Pa

rag

ua

y

Ne

w Z

ea

lan

d

EU

*

EU

*

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2009 (up to Nov) 2010 (up to Nov)

Qty

in 1

000 T

onnes


Source : GTA Excluding live animals (0102), fats, preparations of several types of meat (0209, 0210 99 and 1602 90)

* EU was the 8th biggest importer of Beef products in 2009

Main Importers of BEEF Products (up to Nov) - Monthly figures

Un

ite

d S

tate

s

Un

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d S

tate

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Ru

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Ru

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Me

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up

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Me

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Ja

pa

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Ho

ng

Ko

ng

Ho

ng

Ko

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Ch

ina

Ch

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So

uth

Ko

rea

So

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Ko

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EU

*

EU

*

Ca

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da

(u

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Ca

na

da

(u

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10

)

Ja

pa

n

0

200

400

600

800

1 000

1 200

2009 (up to Nov) 2010 (up to Nov)

Qty

in 1

000 T

onnes


Evolution in EU carcass prices (1):Carcasses of adult male bovines (A/C price – €/100 kg cw)

% change y/y : % change y/y :Average price in décembre 2010 : 343,8

+ 8,9%Price in week 1 :

% Reference Price in week 1 : 156,9%

349,0+ 8,5%

222

242

262

282

302

322

342

362

1 5 9 13 17 21 25 29 33 37 41 45 49 53

€/100 kg cwe

100%

109%

118%

127%

136%

145%

154%

163%

2004-2008 Avg 2009 2010 2011

% of Reference Price


Evolution in EU carcass prices (2):Young bull carcasses (A R3 – €/100 kg cw)

351,42 347,83% change y/y : + 9,2% % change y/y : + 8,1%

Price in week 1 : Average price in décembre 2010 :

280

300

320

340

360

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Evolution in EU carcass prices (3):Steer carcasses (C R3 – €/100 kg cw)



280

300

320

340

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Evolution in EU carcass prices (4):Cow carcasses (D O3 – €/100 kg cw)



210

220

230

240

250

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Evolution in EU carcass prices (5):Heifer carcasses (E R3 – €/100 kg cw)



300

310

320

330

340

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Beef prices in Brazil (Pecuaria.com.br), Argentina (Oncca) Uruguay (Inac) and EU

100.0

150.0

200.0

250.0

300.0

| year2007

| Year2008

| Year2009

| Year2010

| Year 2011 |

€uro/ 10

0kg

EU Beef A/C R3AVG Arroba do Boi (6 St) (Pecuària.com.br)Novillos Export (Oncca Argentina)Media Res Novillo (Inac Uruguay)


weekly US & EU Beef prices in €uro/100kg

90.00

130.00

170.00

210.00

250.00

290.00

330.00

| 04 | 05 | 06 | 07 | 08 | 09 | 10 | 11

US

$/l

b

Steers 550-700lb Omaha (Nebraska) Feeder Steer 600-700lb Oklahoma CitySteers 1050-1200lb Okla/Tex EU Beef C R3


Evolution in EU prices for live bovines (1)Male store cattle (6-12 months; ≤ 300 kg – €/100 kg live weight)

206,50 206,59% change y/y : - 4,6% % change y/y : - 1,4%


190

200

210

220

230

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Evolution in EU prices for live bovines (2)Male calves aged between 8 days and 4 weeks (€/head)



150

170

190

210

230

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Evolution in EU prices for live bovines (3)Butcher calves (€/100 kg cw)



460

480

500

520

540

560

1 5 9 13 17 21 25 29 33 37 41 45 49 53

2004-2008 Avg 2009 2010 2011


Theoretical EU averageMargin Calculation for young bull production fed on basis of

a ratio of Cereals and Compoundfeed

0

50

100

150

200

250

300

350

2002 2003 2004 2005 2006 2007 2008 2009 2010 01 02 03 04 05 06 07 08 09 10 11 12

€u

ro/ 100kg

Margin Feedcost Price of A.R3 average margin '02 - 09

Feed conversion rate: 7kg feed = 1kg Carcase.Feed composition: 40% compound feed, 25% barley, 15% corn, 20% wheat


Evolution in EU prices Categories Global View (€/100 kg cw)

210

235

260

285

310

335

360

2007 2008 2009 2010 2011

A R3 C R3 D O3 E R3

Review of the situation on the EU Beef and Veal Market

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