EU cereal production is expected to recover slightly in the year ahead, although levels are likely to remain below average. This is just one of the findings of the latest short term outlook report from the European Commission’s agriculture and rural development department, published on October 2017.
The report, which is based on data collected up to 15 September 2017, also predicts that the quality of the cereal crop is expected to be mixed, and that world and EU prices are not projected to rise due to abundant supplies.
The report also looked at other arable crops, including sugar, where the European Commission analysts predict an increase in global production over the next year. The end of EU sugar quotas on 30 September 2017 will result in European prices being more exposed to world price volatility, but is also expected to lead to a significant increase in the amount of sugar beet planted, the report suggests.
Analysis of the meat and dairy sectors suggests that global and European demand for dairy products should be strong, whilst milk prices are expected to stay stable. At the same time, the EU meat market should benefit from high exports of beef and sheep meat. Finally, poultry production and trade are expected to improve over the coming year.