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Beef shortage to hit Sweden in the spring and EU subsidies are withdrawn

Thursday, 29 December 2011
In the spring, there may be a shortage of Swedish beef in the stores. This is because many farmers have chosen to slaughter their animals before the end of the year as it is expected that beef subsidies from the EU will disappear on January 1.

Therefore farmers involved are slaughtering more animals than usual now and then that level of animal slaughter will collapse after the 1st of January, reports radio Sweden because EU grants or subsidy will cease.
The grant to be made now is about Skr1500 per slaughtered beef.  Mostly the male that has high beef content is expected to gives the roughly Skr1500 per slaughtered until the end of the year.


The grant has been available from EU to farmers not only to rear more cows, but also more bulls to get a high beef production in the EU countries. But now, that subsidy is to be quashed and Sweden will do away with it from the start of the year.

Some mart thinking farmers have tried to get as much money as possible for their bulls towards the end of the year when the subsidy will round up.

The effect of this action now and in the past few months is the over supply of beef and a depressing Swedish beef prices. Famer’s unions and food procession firms have observed this supply and price effects

According to the Swedish Farmers' Association, LRF, and the food processing company, Scan there has been an oversupply of the Swedish beef the past month, which has depressed prices. Margareta Thorngren, communications director of the Scan, feels that there will be consequences as early as the beginning of next year.

“There will be a shortage of Swedish beef during the first quarter of 2012. Usually when you have a shortage, prices tend to rise. But in this case, we believe that traders will import more meat and it is not good for the Swedish meat production.”

She adds at that it is risky that there will be no option but to actually help increase meat import. At the moment 50 percent of meat consumed in Sweden is domestic and 50 percent import. It would not be fun to change that according to Margareta Thorngren of Scan.
By Scancomarkse Team

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