By Sead Dedovic
After relations between the European Union and the USA worsened due to the customs war, the EU announced the possibility of introducing tariffs on agricultural products from the USA. This decision could bring massive changes in the price of meat in Europe, said analysts from the German Handelsblatt.
Trade wars between the two economic powers have been causing difficulties for everyone for a long time. If the EU decided to introduce tariffs on American soybeans, there could be disruptions in meat production in Europe. Namely, soy is the main ingredient of livestock feed, and the USA is also the main supplier of this product. Because of this, any increase in prices could lead to consequences and reactions.
Many experts are already predicting what this could bring.
Changes in production
One of the major problems in this trade environment is that there is simply not enough soybean production in Europe to meet the needs of agricultural producers. Although soybeans from Brazil are also imported, the US is the main player in the market.
The introduction of tariffs could lead to an increase in the cost of meat production, as farmers would have to purchase more expensive raw materials or turn to alternatives that are not always available in large enough quantities.
The German Meat Industry Association has already warned that an increase in soybean prices would have an incredible impact on meat prices. If tariffs were indeed introduced, it would first affect livestock farmers, and then the prices would be passed on to end products, such as meat products.
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