US Meat Consumption Falling as New Export Deal Signed with Japan The US meat sector is being hit not only by rising prices and the effects of the recent drought, but also the effect of rising prices against flat consumer incomes.

Both the pig sector and the cattle sector have been hit hard over the last year and it is predicted that the cattle numbers will be down by another 1.5 per cent this year following sharp drops to record lows in 2012, John Anderson from the American Farm Bureau told the IPPE conference in Atlanta, Georgia.

With a tighter supply prices have become much higher.

And although it has taken a little while for higher prices to reach the consumer, consumer prices have risen considerably last year, particularly in the beef sector.

But the rise in prices has also coincided with personal disposable incomes remaining flat.

This has started to produce a significant drop in consumption.

Meanwhile, Japan and the United States have agreed on a new deal which should pave the way for expanded exports of US beef and beef products to Japan.

Under the new terms, Japan will now permit the import of beef from cattle less than 30 months of age, compared to the previous limit of 20 months. The only exception is ground beef, which will be phased in after a surveillance period to ensure that the new export protocol is proceeding smoothly.

This dramatically opens the market given that 95 per cent of the slaughtered US cattle would now be eligible for export.

In the EU, the European Members of Parliament have on the surface given the go-ahead to a fairer, greener Common Agricultural Policy.

The European Parliament's agriculture committee has agreed measures that will help to even out payments to farmers across the EU so that the poorer and newer member states are not receiving substantially less than the more established states.

The MEPs have agreed to cap the amount of subsidies for individual farmers and reduce the large sums that have previously been handed out, so some of that money can be redistributed.

They have also approved new environmental rules focusing on crop diversification, maintaining permanent pasture and creating ecologically focused areas.

However, the MEPs are stridently standing by a no cuts policy and have refused to see any reduction in the Common Agricultural Policy budget.