EU Livestock subsidies' effect on red meat consumption
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1 EU Livestock subsidies' effect on red meat consumption Nutrition, Physical Activity & Cancer Prevention: Current Challenges, New Horizons September 13, 2010
2 EPHAC (conflicts of interest) Brussels based alliance of public health organisations advocating for a healthier, more sustainable Common Agriculture Policy (CAP) Members: European Heart Network, European Public Health Alliance, EuroHealthNet, Heart of Mersey, National Heart Forum and North West Health Brussels Office
3 3
4 Price, Production and Availability -> Price elasticity: meat highly price elastic Low meat prices->higher BMI Low-income households Are more sensitive to price changes Consume more processed + lowquality meat ->Increase in meat price would decrease meat consumption But would it lead to equity?
5 CAP and nutrition Consensus CAP effects what we eat, but difficult to measure actual impact Subsidies can affect directly i.e. school milk program or indirectly intervention stocks What about livestock subsidies and red meat consumption?
6 g/day Source: FAOSTAT Red meat consumption EU Red Meat Supply EU - 27 Austria Belgium Bel-Lux Bulgaria CYPRUS Czech Republic Czechoslovakia Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania
7 g/day Source: FAOSTAT Red Meat Supply Denmark Red meat consumption EU Bovine Meat Meat, Other Mutton & Goat Meat Pigmeat total red meat 50 0
8 g/day Source: FAOSTAT Red Meat Consumption United Kingdom Red meat consumption EU Bovine Meat Meat, Other Mutton & Goat Meat Pigmeat total red meat 50 0
9 g/day Source: FAOSTAT Red Meat Consumption Italy Red meat consumption EU Bovine Meat Meat, Other Mutton & Goat Meat Pigmeat total red meat 50 0
10 g/day Source: FAOSTAT Red Meat Consumption Luxembourg Red meat consumption EU Bovine Meat Meat, Other Mutton & Goat Meat Pigmeat total red meat 50 0
11 g/day Source: FAOSTAT 300 Red Meat Supply Western Europe AUSTRIA BEL-LUX BELGIUM LUXEMBOURG FRANCE GERMANY THE NETHERLANDS 50 0
12 g/day Source: FAOSTAT 300 Red Meat Supply UK and Ireland IRELAND UNITED KINGDOM
13 g/day Source: FAOSTAT 300 Total Red Meat Scandinavia + Baltic DENMARK SWEDEN FINLAND ESTONIA LATVIA LITHUANIA 50 0
14 g/day Source: FAOSTAT 300 Red Meat Supply Mediterranean CYPRUS GREECE ITALY MALTA PORTUGAL SPAIN 50 0
15 g/day Source: FAOSTAT 300 Total Red Meat CEE CZECH REPUBLIC CZECHOSLOVAKIA SLOVAKIA HUNGARY POLAND 50 0
16 g/day Red Meat Supply New Accession BULGARIA ROMANIA SLOVENIA Source: FAOSTAT
17 Closed and open systems Price Supply Price Supply P P* Supply with subsidy Supply with subsidy P w + t P w Demand Demand C C* Qty S S* C* C Qty
18 CAP subsidies billion % GDP 0.7% EU-10 EU-12 EU-15 EU-25 EU % 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Export subsidies Market support Direct aids Decoupled payments Rural development % of EU GDP
19 Indexed Consumer prices Meat Belgium Denmark Germany (including ex-gdr from 1991) Estonia Ireland Greece Spain France Italy Cyprus Latvia Lithuania Luxembourg (Grand-Duché) Malta Netherlands
20 OECD estimates of Agriculture support Consumer Nominal Protection coefficient (NPC) red meat OECD estimates of Agriculture support Consumer NPC Beef Consumer NPC Sheepmeat Consumer NPC Pigmeat
21 CAP subsidies for livestock -> price, production and availability of red meat Complex interactions, no clear findings Since reform in 2003, decoupled subsidies Price volatility a factor Poor translation of Farm gate prices to retail World market and production costs Animal feed subsidies Research needed - To identify a clear link between subsidies and food prices (theory practice)
22 22
23 Climate Change FAO livestock accounts for 18% of total greenhouse gas emissions Biodiversity loss and water scarcity Methane times more potent than CO2 1kg of intensively produced red meat = 10 kg of animal feed 55,500 litres of water
24 Global Food Security (1) Global factors: Meat demand expected to double by >increases global food production Meat demand in India and China increasing More meat production more greenhouse gas emissions ->Is this sustainable
25 Global Food Security (2) EU factors: CAP supports mainly big agribusiness intensive production systems EU export subsidies dumping Import tariffs no competition EU support of biofuels ->Deprive poor countries of their own resources feeding our food
26 Converging agendas sustainable diets Global Food Security Climate Change Chronic Disease Less energy dense, more nutrient Less dairy and meat, processed foods high dense>increased consumption of F/V, in fat, sugar and salt. grains (whole), plant based diets.
27 Conclusions No clear relation between subsidies, price and consumption Subsidies favour intensive production systems Public policy sustainable production and consumption Target subsidies, taxes and VAT Creating better links health, climate and agriculture
28 Food for thought - Reform or a radically different food system? Moving from CAP to a Common Sustainable Food Policy......this requires addressing how health, environment, infrastructure and agriculture can be better linked to encourage a healthier, more sustainable food system...health and health equity as a prerequisite for sustainable growth
29 Thanks! Special thanks to for Shana Dorr, Maastricht University for research Any, questions comments etc., please send to: Get involved:
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