BEEF PRODUCTION IN THE EUROPEAN UNION AND THE CAP REFORM An overview of situation and trends

Production systems and economic importance of the EU beef and veal sector The beef and veal sector contributes 10% to the total value of agricultural production in the EU, being the second biggest contributor after the dairy sector whose share represents 14% of the total value. In many regions, such as mountain and hilly areas of Central Europe, or countries like Ireland (25% of the agricultural GDP), it is a vital economic activity where few alternatives for other agricultural production exist. In addition to the sector's economic importance, extensive beef production systems play an important role in the protection and management of the environment (maintenance of countryside, control of weeds and bushes). Without this and other types of livestock, many areas would suffer serious environmental degradation and human depopulation. With a total production of some eight million tons, the EU represents about 13% of the total production of beef and veal in the world. In the last decade, beef production in the EU-15 has been gradually declining with a total drop of 7,6% in 2003 compared with 1993. In 2004, beef production in the enlarged European Union (twenty five Member States) equalled to 1993 production in the EU-15. Production in other European countries also declined: in 2004 Europe produced 11,6 million tons of beef compared with 14,8 million t in 1993-95. During the same period, the global beef production increased by 6,3 million tons, or by 16,8% due to the substantial increase in other continents, particularly in South America (increase of 2,6 million tons or 26%). One third of beef and veal produced in the European Union - directly or indirectly - comes from dairy herds, while two thirds are produced from specialised beef breeds and their crosses. The great variety of production systems developed in the last century is primarily based on natural conditions, farm structure and traditions. In general, there are two types of productions