A review of the world sheepmeat market: The E E C (10)

Abstract

Patterns of production, consumption and trade in the EEC vary widely among the ten members. The U. K. and France are major consumers of sheepmeat, followed by Ireland, Italy, Germany and Greece. In the other States sheepmeat consumption is relatively unimportant. Production and trade are similarly distributed. However, the trends over the period considered show an increase in production in most states, and an increase in consumption in France, Greece, Germany and Italy, but a major decline in the United Kingdom. As the EEC produces only 60 per cent of its consumption, it is highly dependent on external sources for supply. Imports were at a maximum in 1969 (422 Kt), but have dropped steeply since, to 328 Kt. This is a result of declining demand in the U.K. and the EEC's imposition of a 20 per cent tariff. A further decline is expected following the introduction of a Common Policy for sheepmeat in 1980. The main suppliers to the Community are N. Z., Argentina, Australia and the East European states. In 1980 these countries supplied 80.4 per cent, 30 per cent, 1.9 per cent, and 13.1 per cent of total imports respectively. The outlook for trade is for a continuation of the current trends, with a net decrease in imports. Trade with Germany, Italy, France and Greece should continue to grow, but may be offset by a decline in other states, particularly the U.K. Overall, because of the declining market, and protectionist import policies, the EEC will offer only limited opportunities for exporters during the 1980's, though will continue to be the major and probably most stable of world markets.