The research, carried out by Claud Deblitz from the Thunen Institute of Farm Economics, and Kevin Dhuyvetter, of Kansas State University, looked at drivers and developers for potential beef trade between the US and the EU following the possible relaxing of import tariffs on US and Canadian beef.
The study ruled out any live trade export. Deblitz said: “Even in the case of an FTA 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.”
On the beef finishing side, the research showed production cost differences between the EU and the US had narrowed. They said that even taking in transport costs, along with the costs of complying with EU regulations such as non-hormone use, US costs would be at a level that was slightly higher than the average prices received on EU farms during 2012.
However, the quality aspect of US beef would negate those higher cost issues and, at the moment, the EU price for beef was higher than in the US home market, which meant that exports could offer an opportunity for US producers.
Dhuyvetter said: “If the EU starts importing more beef from the US, it will be high-quality (marbled) grain beef at competitive prices from cattle that are fed with grain in the last fattening period, which already arrives to a limited extent under specific quota arrangements.”
That said, at present, markets in Asia, North Africa and Middle East with similar if not higher prices than the European market could potentially prove more attractive, therefore limiting US interest in the EU sector.