EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2)...

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EU Livestock subsidies' effect on red meat consumption Nutrition, Physical Activity & Cancer Prevention: Current Challenges, New Horizons September 13, 2010

Transcript of EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2)...

Page 1: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

EU Livestock subsidies' effect on red meat consumption

Nutrition, Physical Activity

& Cancer Prevention:

Current Challenges,

New Horizons

September 13, 2010

Page 2: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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

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Page 4: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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 + low-quality meat

->Increase in meat price would decrease meat consumption – But would it lead to equity?

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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?

Page 6: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Red meat consumption EU

0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed 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

Source: FAOSTAT

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Red meat consumption EU

0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Supply

Denmark

Bovine Meat

Meat, Other

Mutton & Goat Meat

Pigmeat

total red meat

Source: FAOSTAT

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Red meat consumption EU

0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Consumption

United Kingdom

Bovine Meat

Meat, Other

Mutton & Goat Meat

Pigmeat

total red meat

Source: FAOSTAT

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Red meat consumption EU

0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Consumption

Italy

Bovine Meat

Meat, Other

Mutton & Goat Meat

Pigmeat

total red meat

Source: FAOSTAT

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Red meat consumption EU

0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Consumption

Luxembourg

Bovine Meat

Meat, Other

Mutton & Goat Meat

Pigmeat

total red meat

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat SupplyWestern Europe

AUSTRIA

BEL-LUX

BELGIUM

LUXEMBOURG

FRANCE

GERMANY

THE NETHERLANDS

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Supply

UK and Ireland

IRELAND

UNITED KINGDOM

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayTotal Red Meat

Scandinavia + Baltic

DENMARK

SWEDEN

FINLAND

ESTONIA

LATVIA

LITHUANIA

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayRed Meat Supply Mediterranean

CYPRUS

GREECE

ITALY

MALTA

PORTUGAL

SPAIN

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

1

19

63

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

g/d

ayTotal Red Meat

CEE

CZECH REPUBLIC

CZECHOSLOVAKIA

SLOVAKIA

HUNGARY

POLAND

Source: FAOSTAT

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0

50

100

150

200

250

3001

96

11

96

21

96

31

96

41

96

51

96

61

96

71

96

81

96

91

97

01

97

11

97

21

97

31

97

41

97

51

97

61

97

71

97

81

97

91

98

01

98

11

98

21

98

31

98

41

98

51

98

61

98

71

98

81

98

91

99

01

99

11

99

21

99

31

99

41

99

51

99

61

99

71

99

81

99

92

00

02

00

12

00

22

00

32

00

42

00

52

00

62

00

7

g/d

ayRed Meat SupplyNew Accession

BULGARIA

ROMANIA

SLOVENIA

Source: FAOSTAT

Page 17: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Qty Qty

Price Price

SupplySupply

Demand Demand

Supply

with

subsidy

Supply

with

subsidy

C C*

Pw + t

Pw

S C*S*

P

P*

C

Closed and open systems

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0

10

20

30

40

50

60

70

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

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03

20

04

20

05

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06

20

07

% GDPbillion €

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

Export subsidies Market support Direct aidsDecoupled payments Rural development % of EU GDP

EU-10 EU-12 EU-15 EU-25 EU-27

CAP subsidies 1980 - 2007

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60.00

80.00

100.00

120.00

140.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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

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OECD estimates of Agriculture support

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

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96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

OECD estimates of Agriculture supportConsumer Nominal Protection coefficient (NPC) red meat

Consumer NPC Beef

Consumer NPC Sheepmeat

Consumer NPC Pigmeat

Page 21: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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)

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Page 23: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Climate Change

• FAO livestock accounts for 18% of total greenhouse gas emissions

• Biodiversity loss and water scarcity• Methane 23-72 times more potent than

CO2• 1kg of intensively produced red meat =

–10 kg of animal feed–55,500 litres of water

Page 24: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Global Food Security (1)

• Global factors:

– Meat demand expected to double by 2050->increases global food production

– Meat demand in India and China increasing

– More meat production – more green-house gas emissions

->Is this sustainable

Page 25: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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

Page 26: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Converging agendas – sustainable diets

Global Food

Security

Climate Change

Chronic Disease

Less energy dense, more nutrient dense>Increased consumption of F/V, grains (whole), plant based diets.

Less dairy and meat, processed foods high in fat, sugar and salt.

Page 27: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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

Page 28: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

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

Page 29: EU Livestock subsidies' effect on red meat consumption · 2017. 3. 15. · Global Food Security (2) •EU factors: –CAP supports mainly big agribusiness – intensive production

Thanks!

Special thanks to for Shana Dorr, Maastricht University for research

Any, questions comments etc., please send to:

[email protected]

Get involved:

www.arc2020.eu