Market News
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Grain-Fed Beef Quota11 Nov 2009 |
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The US would be unlikely to fully utilize the new 20,000 tariff free grain-fed beef quota this year, but possibly in 2010-11. The US Meat Exporters Federation (USMEF) stated that the erga omnes (Non country specific) principle complicated the Agreement. Australia was noted as one of the likely additions to the quota and it is estimated that a possible solution to the problem would be to enlarge the quota.
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UK food security linked to global food sources5 Nov 2009 |
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Britain must look to global food security and sustainability in order to ensure adequate food availability in future, according to The Department for Environment, Food and Rural Affairs (Defra) Food Policy Unit .
DEFRA mentions that UK food security is intrinsically tied to global food security, and that more global trade, not less, was needed in order for the agricultural sector to be better equipped to respond to world market signals.
DEFRA’s comments follow the recent release of the UN's Food and Agriculture Organisation predictions that the world will have to increase its food output by around 70% by 2050, in order to feed the growing population.
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Italy requesting intervention on import licenses23 Oct 2009 |
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Italy has requested the Commission to intervene in licence granting in order to facilitate operators’ import trade procedures. This comes as a result of the difficulties experienced by Italian traders to source high quality meat from South America due to health restrictions in Brazil and lack of available product in Argentina, coupled with the current economic crisis.
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Struggling sheep sector needs long-term investment10 Oct 2009 |
The sheepmeat sector is facing challenging times, according to the EU Farm Commissioner, but with the right marketing and investment, the sector could thrive.To counter this, the Commissioner proposed the possibility of international players in the sheepmeat sector teaming up for purposes of promotion.
Although the Commissioner could not commit to the exact direction CAP reform is likely to take, it has been stated that the environmental aspects of sheep farming would get more attention after 2013, and that public money will cover the extra costs incurred by environmentally beneficial farming.
Consumption of sheepmeat is unquestionably falling, and flocks are in decline. In the EU-15 in 1997, consumption was around 3.6 kg of sheepmeat per head. Last year, this had fallen to around 2.4 kg/head - a pattern which is part of a long-term decline. Production is also weakening, with a sharp drop in output of 7% between 2007 and 2008.
The lack of profitability in the sheepmeat sector has been responsible for the drop in production. The discussions are also focused on ways to meet consumer expectations in relation to animal welfare, food safety and animal traceability requirements, from a farmer, industry and retailer perspective.
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France turns to Ireland to fill Fischer Boel's shoes28 Sep 2009 |
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France is pushing for Ireland to lobby for the agricultural portfolio in the next European Commission, as part of a campaign to protect EU farm subsidies in years to come. The French government is keen to have a CAP-friendly new agricultural Commissioner to replace Mariann Fischer Boel when she steps down at the end of her five year mandate.
In light of the suspension of Romania's EU farm funds last year as a result of irregularities, and in view of the sheer size of Romania's farm sector and its stake in the CAP, in the actual chances of a Romanian getting the job are diminishing fast.
This has caused France (the key player in an increasingly assertive of CAP conservatives within the EU) to switch favour and support a possible Irish nominee.
Front-runners for the Irish nomination are thought to include former Parliament President Pat Cox, Irish MEP Pat Gallagher and Ireland's current nominee at the European Court of Auditors, Maire Geoghegan-Quinn.
Convention dictates that the job of agriculture Commissioner should not go to one of the 'big' EU member states, which rules out the UK, France, Germany, Spain, Italy or Poland.
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Q&A Q: I own a Halal butcher shop and we have a large catering order, we sometimes wish to purchase lamb carcases from overseas?
A: Sheepmeat imports enter the EU via preferential quotas or by paying import duties. The following have country specific sheepmeat quotas with zero import duties: Argentina, Australia, Chile, Iceland, New Zealand, Norway Turkey and Uruguay. If a buyer considers importing sheepmeat outside one of these quotas high tariffs apply. For example, bone-in lamb legs attract 12.8% customs duty on the CIF price, plus an import tariff of €2,227 per tonne.
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