Favourable climatic conditions allowed EU cereal production to reach a new record level in 2014/15, according to the Commission's Winter 2015 Short-Term Agricultural Outlook published today, bringing stocks back to comfortable levels and allowing for huge exports.
Favoured by the EUR/USD exchange rate, exports of poultry meat, beef and several dairy products also increased significantly in 2014.
After the record levels seen in 2013, dairy product prices eased back in 2014, but the decline appears to have bottomed out in early 2015, shortly before the end of the quota regime. Based on this downward pressure on prices in the wake of 2014 record milk production, forecasts indicate no major surge in milk production in 2015 in the immediate post-quota period.
In the meat sector, the report notes the increase in suckler cow herd after several years of decline. In addition, pig and poultry meat production are expected to increase, supported by lower feed prices, increased productivity and solid demand.