Blog: EU outlook mixed for dairy, meat sectors
Katy Askew | 22 January 2013
The EU is expected to lose some ground in its meat exports over the next ten years, while dairy exports are expected to rise by as much as one-third.
According to the European Commission's outlook to 2022, aggregate meat imports into the EU are forecast to grow by 5.2% over the next ten years, while exports are likely to decline by 6.8%. This will leave the EU a net exporter of pig and poultry meats, but Europe will become a net importer of all other meats.
In the near term, it seems that the European meat sector could be in for a bit of a tough time also. Over the next two years, the Commission predicted the EU meat market will contract by 2% due to the ongoing economic downturn. Adding to these troubles, the EU pork industry is faced with a further challenge in the form of the EU Sow Stall Ban that came into effect in January.
The outlook for dairy, on the other hand, seems more positive. Milk and dairy products are expected to receive a boost from continued growth in world demand, fuelled by changing taste preferences and a growing global population. According to the Commission, this export demand will sustain commodity prices in the face of an end to the EU milk quota, which expired in 2015.
The report predicts an increase in EU cheese exports of more than one third by 2022, based on sustained demand from main destinations of EU cheese (Russia, Middle East countries, the US). Skimmed milk powder exports are expected to increase by 30% by 2022, as a result of sustained demand from China, Algeria and Middle East countries.
The outlook, then, appears mixed for the EU dairy and meat industries.
There has been an increase in M&A among companies in the food sector in recent months - and management consultants at EY expect to the trend to continue....
Nelson Peltz is not letting go. The US billionaire investor is continuing in his quest to get PepsiCo to split in two - and has reportedly suggested a proxy battle with the company could be on the hor...
just-food has launched a section on its website dedicated to interviewing internationally-ambitious small- and medium-sized enterprises. ...
The boom in demand for dairy products in emerging markets has been underlined by the latest data on the largest companies in the industry....
- The just-food interview: Premier Foods CEO Darby
- On the money: Danone denies strategy overhaul
- On the money: Unilever shifting into growth spots
- Comment: Danone could be mulling strategy shift
- Focus: Progress but Campbell faces questions
- Unilever sees lacklustre H1 food sales
- PepsiCo H1 profits up, forecast raised
- UPDATE: Premier establishes international unit
- Hovis eyes Leicester bakery closure
- M&A-hungry dairy co-op Agropur in Davisco deal