European Union: Livestock and Products Annual

Forced by record high feed and energy prices and tightening environmental restrictions, EU cattle and swine farmers are scaling back production. High carcass prices have encouraged cattle farmers to advance the slaughter of their herds, but lower slaughter weights will put pressure on overall beef production this year. The future of the EU cattle sector will largely depend on the national implementation of the new Common Agricultural Policy (CAP), scheduled for 2023. Besides high input prices, the EU swine sector is also affected by dwindling export demand. Although processors and exporters report recovering demand from Asia, producers are not planning for similar volumes as shipped during 2020 and 2021. Leading companies in Northern Europe as well as Southern Europe plan to focus less on quantity and more on quality, profitability, and the license to produce. This license to produce is mainly related to the carbon dioxide emissions and animal welfare conditions.