France-Cattle trade steady.

FRANCE -

Figures released by Agreste show that for the whole year, 2008, French cattle throughput was largely unchanged at 5.03 million head, according to Peter Duggan, Strategic Information Services at Bord Bia.

Increased supplies of calves and cows were largely offset by reduced young bull, heifer and steer supplies. However, trade commentary suggests that the reported drop in young bull disposals may be understating supply levels.

A drop of two per cent in average carcase weights led to beef production falling by a similar percentage to 1.46 million tonnes. Little change is anticipated in 2009 as higher cow supplies are expected to be offset by lower male disposals. French female beef production increased in second half of 2008 as producers increased cullings of dairy cows in response to lower milk prices while high feed costs also led to higher beef cow disposals. Some further rise in disposals is anticipated in 2009 with some lift in carcase weights also forecast.

The increasing use of some young bulls under 12 months of age in veal production makes it difficult to anticipate. However, male beef production is likely to decline by up to 5% in 2009 helped by a recovery in the store export trade. Little change is anticipated in calf supplies.

Consumption of beef up to the end of November 2008 was down by almost two per cent to around 1.5 million tonnes. Consumer panel data for the first 11 months of 2008 indicates a fall of five per cent in household purchases. This has been affecting import demand.

The live export trade to Italy showed signs of returning to more normal levels during the autumn of 2008. This recovery is expected to continue in 2008 as Italian feedlots seek to increase cattle numbers.