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Beef Production — profit or losses?

Demand creates supply - so short you can define the state of Ukrainian beef cattle. And more precisely, the lack of demand leads to a complete collapse of this industry.

It is not needed to talk about the benefits of beef, because it is no secret that it is one of the few types of meat enriched with scarce micronutrients. But even this factor does not stimulate Ukrainians to supplement their diet with beef or veal.

Such meat has always been more expensive, than pork or poultry. You need more time to grow livestock and it is more expensive. However, in Ukraine for the first time in many years, the cost of beef and pork almost equaled. Paradox!

Beef consumption is higher in most developed countries, where purchasing power is high (Europe, America). The lower the standard of living, the more people who are forced to give preference to pork and chicken.

Nutritionists believe that a person of working age should consume each year for at least 14 kg of beef and veal. In Ukraine this figure is 9 kg. If scientifically justified intake of meat is 80 kg per year, in Ukraine now it is 50 kg. Instead, we are adding to our diet chicken - relatively cheap and quick to prepare. In the first two months this year, Ukrainians consumed 7.8 tons of beef, more than 40 tons of pork and (imagine!) 130 tons of poultry meat. And, worst of all, the tendency to reduce the consumption of beef, as evidenced by the experts, will continue. A somewhat similar situation is in Europe where people consume this meat less. Why is it so? First of all, the deterioration of purchasing power which is due to the economic crisis.

World beef production decline is due to the fact that U.S. and Mexico began to produce less of that meat (0.5% less in 2011 compared to 2010). According to USDA, this year projected decline in beef production (approximately 4.2%) offset by an increase in meat production in India (9%, to 3.5 million tons), Brazil (2.2%, to 9.2 million tons), Argentina (4%, to 2.6 million tons) and Australia. Australian farmers, using the situation, began actively to restore the cattle and beef production, and it will increase there by 4.7%.

Read more information in the magazine «Milk and Farm» № 3 (10), June 2012

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