The rising cost of beef production have become a problem for the global meat industry

The difference between the cost of production of beef and its cost is reduced around the world, and it has become a real problem for the global meat industry.

impact that it has on reducing income beef sector was the main problem of the world meat industry, says Klaus Deblitts, an economist at the Institute of Agricultural Economics and coordinator of the German research network "Agro Benchmark» (Agri Benchmark).

Speaking at the World Forum on the problems of industries of beef and mutton, held in York last week, he said that there is a clear separation of the conditions for price growth and rising cost of production throughout the global meat industry.

«Countries outside the EU, in particular Brazil, Argentina and China, show a marked tendency to increase in the prices of meat than the EU over the last 10 years, even in spite of the fact that in the UK, meat prices are the highest in Europe - he says. - Even if some of the recent increases in the price of meat will lead to the stimulation of growth of production, the prices will still rise ».

According Deblittsa, if the price increases for meat in some non-European countries is not surprising degree of increase in the cost of meat production in these countries is very important. "The difference between the cost of meat and the cost of its production is reduced, - he says. - For example, the cost of production of 100 kg of beef (in U.S. dollars) in China rose by 150% between 2005 and 2012. In Brazil, during the same period it increased by 100% in Argentina - by 80-100%, depending on the methods of production ».

In addition, he said, rising production costs account for the period when the production of beef in countries such as China and Brazil, have increased significantly.

growth of production costs in the EU for the same period was also the case, however, was not as dramatic - only about 20%. However, despite the fact that this growth rate is not so great, Deblitts sure it is also a specific problem. "The increase in production costs and price increases around the world means that the profits of producers falls, - he says - particularly in the production of beef, because here there are many problems associated with feed, the availability of land, energy and labor costs rise."

Deblitts also stressed that the meat industry in the world is faced with a number of other problems, in particular, the spread of animal diseases, technical barriers to production, tightening regulations regarding animal welfare and concern about food security.

beef production sector, according to him, these conditions are particularly vulnerable, as more dependent on consumer trends.

Meatinfo.ru