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The trend of the dairy and beef cow herd numbers differ between Western and Central Europe, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. While in Western Europe significant reductions are reported, both the dairy and beef cow herds are stabilizing in Central Europe. This difference is mainly caused by the Common Agricultural Policy (CAP) of the EU. In most western EU Member States, the farmer’s income is pre-dominantly based on the farmed hectares. While in Central Europe, CAP support is provided specifically to small cattle farmers. The economic and policy climate for cattle farming is particularly positive in Poland. The Polish dairy sector is restructuring and further building its dairy herd, phasing out the less efficient and older cows. While the Polish beef sector is benefitting from the increased beef prices, and the improving demand in EU as well as non-EU markets. To fulfill this demand, the sector is sour

There are further consequences of the outbreak of bluetongue in Poland. Five countries have now introduced a ban on cattle imports from Poland.

The decline in beef production is occurring despite record profitability, as analysts from Credit Agricole emphasize. Why is production falling? Will cattle purchase prices remain elevated?