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
New study: How does Europe become a leading player for software and IT services?
03.04.2017 | Fraunhofer-Institut für System- und Innovationsforschung (ISI)
Reusable carbon nanotubes could be the water filter of the future, says RIT study
30.03.2017 | Rochester Institute of Technology
More and more automobile companies are focusing on body parts made of carbon fiber reinforced plastics (CFRP). However, manufacturing and repair costs must be further reduced in order to make CFRP more economical in use. Together with the Volkswagen AG and five other partners in the project HolQueSt 3D, the Laser Zentrum Hannover e.V. (LZH) has developed laser processes for the automatic trimming, drilling and repair of three-dimensional components.
Automated manufacturing processes are the basis for ultimately establishing the series production of CFRP components. In the project HolQueSt 3D, the LZH has...
Reflecting the structure of composites found in nature and the ancient world, researchers at the University of Illinois at Urbana-Champaign have synthesized thin carbon nanotube (CNT) textiles that exhibit both high electrical conductivity and a level of toughness that is about fifty times higher than copper films, currently used in electronics.
"The structural robustness of thin metal films has significant importance for the reliable operation of smart skin and flexible electronics including...
The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.
Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...
The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...
Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.
Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...
20.04.2017 | Event News
18.04.2017 | Event News
03.04.2017 | Event News
24.04.2017 | Physics and Astronomy
24.04.2017 | Materials Sciences
24.04.2017 | Life Sciences