April 19 (Bloomberg) -- The European Union will cut export subsidies for beef by 33 percent because of elevated prices and a “tight” market.
Export refunds for beef carcasses will drop to 163 euros ($213) a metric ton from 244 euros, the European Commission, the EU’s executive arm, wrote in an e-mailed statement today. Rates for deboned, fresh and other cuts will be reduced accordingly, it wrote.
The proposals will take effect immediately on their publication in the EU’s official journal, scheduled for tomorrow or the day after, the statement showed. The EU may export 445,000 tons of beef this year, accounting for 5 percent of world trade in the meat, the U.S. Department of Agriculture forecast this month, cutting its outlook by 20,000 tons from October.
“The market is relatively tight, with production relatively low and prices high,” the commission wrote. “In this context, exports are naturally reduced and imports are decreased due to a lack of supply worldwide.”
Refunds for processed pig-meat products including hams and sausages were cut to zero, according to the commission. Export subsidies for eggs were lowered because of higher EU prices due to a shortage, it said.
Export refunds for poultry were left unchanged, with the subsidy for frozen whole chicken at 325 euros a ton, according to the statement.
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