Farms.com Home   News

EU Considers New Tariffs on US Soybeans, Could Raise Meat Prices

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.

Click here to see more...

Trending Video

What’s at Stake in Every Slice | On The Brink: Episode 7

Video: What’s at Stake in Every Slice | On The Brink: Episode 7

Six hundred Canadian farms grow grain for Warburton's under custom contract — and that partnership exists because of Canadian plant breeding. Now the man responsible for maintaining it is sounding the alarm.

Adam Dyck is the program manager for Warburton's Canada, a company that produces over two million loaves of bread a day for more than 20,000 retail locations across the UK. He's watched Canadian wheat deliver thirty years of yield gains and quality advancements that make it worth sourcing at scale — and shipping across the Atlantic. But he's also watching the investment conditions that produced those gains come under pressure. Dyck makes the case for a new funding mechanism that brings both public and private dollars into wheat breeding before Canada's competitive window starts to close.