The US and Canada are major beef producers and exporters and have an interest to export beef meat to the EU due to the higher beef price. But the existing import tariff of approximately 60 % as well as sanitary trade restrictions mean limitations of beef imports from both North American countries to the EU.
If the negotiations about the free trade agreement between the US and the EU can be finalised by the end of 2014, these barriers could be at least partially removed.
The study fabricated by Claus Deblitz (Thünen Institute of Farm Economics) and Kevin Dhuyvetter (Kansas State University) analyses the status quo, drivers and development as well as the potential of beef production and trade. The researchers use the data from agri benchmark, a global network which comprises 30 countries worldwide with internationally standardised methods to analyse farms, production systems and their profitability. The focus of the study is on farm level.
Live cattle exports highly unlikely
The study shows that low or non-existent weaner price differentials do not constitute an incentive for North American producers to sell weaners to the EU. Exports of individual breeding cattle from beef breeds are exceptions. “Even in the case of a free trade agreement it is highly unlikely that weaners and backgrounders will ever be shipped from North America to Europe in significant quantities and for non-breeding purposes due to animal welfare issues and expectable public pressure”, says Claus Deblitz, coordinator of the agri benchmark Beef and Sheep Network. Thus, no direct effects on the rearing (cow-calf) sector in European countries are expected. But how will the agreement change the situation in the finishing sector?
Beef finishing on farm costs and prices
The present situation in the beef finishing systems illustrates that there are substantial price and costs differences between US and Canadian farms and EU farms. However, the differences narrowed from 2011 to 2012 due to a large number of conditions, among them the development of exchange rates, livestock and feed costs. Reflecting transport costs as well as the costs for not applying growth hormones and beta-agonists, which are forbidden in the EU, would take the US-costs to a level which is slightly higher than the prices received by most typical EU farms in 2012. But the North American beef has not to compete against these prices due to higher quality. At the same time, US-prices remain below EU-beef prices. Thus, US beef producers could improve profitability / reduce present losses with exporting beef to the EU. Consequently there remains an incentive for US beef producers to export beef to the EU without the existence of a tariff. “If the EU starts importing more beef from the US, it will be high quality (marbled) grain beef at competitive prices from cattle which are fed with grain in the last fattening period, which already arrives to a limited extent under specific quota arrangements”, explains Kevin Dhuyvetter. Therefore the authors expect that the increase in volume of American beef exports are limited especially since markets in Asia, North Africa and Middle East have a comparable or higher price level than the European market.The full study can be downloaded here:
Dr. Michael Welling | Thünen-Institut
WAKE-UP provides new treatment option for stroke patients | International study led by UKE
17.05.2018 | Universitätsklinikum Hamburg-Eppendorf
First form of therapy for childhood dementia CLN2 developed
25.04.2018 | Universitätsklinikum Hamburg-Eppendorf
The more electronics steer, accelerate and brake cars, the more important it is to protect them against cyber-attacks. That is why 15 partners from industry and academia will work together over the next three years on new approaches to IT security in self-driving cars. The joint project goes by the name Security For Connected, Autonomous Cars (SecForCARs) and has funding of €7.2 million from the German Federal Ministry of Education and Research. Infineon is leading the project.
Vehicles already offer diverse communication interfaces and more and more automated functions, such as distance and lane-keeping assist systems. At the same...
A research team led by physicists at the Technical University of Munich (TUM) has developed molecular nanoswitches that can be toggled between two structurally different states using an applied voltage. They can serve as the basis for a pioneering class of devices that could replace silicon-based components with organic molecules.
The development of new electronic technologies drives the incessant reduction of functional component sizes. In the context of an international collaborative...
At the LASYS 2018, from June 5th to 7th, the Laser Zentrum Hannover e.V. (LZH) will be showcasing processes for the laser material processing of tomorrow in hall 4 at stand 4E75. With blown bomb shells the LZH will present first results of a research project on civil security.
At this year's LASYS, the LZH will exhibit light-based processes such as cutting, welding, ablation and structuring as well as additive manufacturing for...
There are videos on the internet that can make one marvel at technology. For example, a smartphone is casually bent around the arm or a thin-film display is rolled in all directions and with almost every diameter. From the user's point of view, this looks fantastic. From a professional point of view, however, the question arises: Is that already possible?
At Display Week 2018, scientists from the Fraunhofer Institute for Applied Polymer Research IAP will be demonstrating today’s technological possibilities and...
So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics
Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...
25.05.2018 | Event News
02.05.2018 | Event News
13.04.2018 | Event News
25.05.2018 | Event News
25.05.2018 | Machine Engineering
25.05.2018 | Life Sciences