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BRUSSELS - Some of Europe's major lamb producers plan to ask for EU cash for a marketing campaign to boost falling consumption and help farmers improve profit margins in the face of imports from New Zealand.
Led principally by Ireland, the idea is to get European consumers to
eat more lamb, as opposed to other meats, and also to support a countryside farming industry where animal numbers have been in decline in many EU countries.
"There is a real problem with profitability in the sector. Margins are very low," an official at a national EU livestock organisation said. "Sheep numbers are falling and farmers are getting out of the business because they can't make any money."
"Britain, France and Ireland have been working closely together to try and promote European sheepmeat," he said. "The major thrust is to improve awareness among European consumers."
EU agriculture ministers are expected to hold a general debate on Europe's sheep and lamb sector in a month or so, with the European Commission - the EU's executive arm - expected to come under pressure to agree to fund a lamb promotion campaign.
France, a major lamb consumer, has seen demand fall sharply in recent years, by up to 20 per cent over the last five years.
While demands from Irish farmers for the EU to consider extra subsidies and ways to restrict non-EU imports are unlikely to gain support from the Commission, there may be some leeway in the rules for financing promotion campaigns, officials say.
EU rules allow for quality lamb meat that has been granted a protected label to qualify for EU-funded promotion programmes.
Britain, France, Ireland, Portugal and Spain have won protected name status for certain types and cuts of their lamb.
"We want to do everything we can to promote this excellent European product," Commission agriculture spokesman Michael Mann said. "However, we've already given protected status to a number of specific lamb products, so that gives a promotional tool."
Adding to the European sheep industry's problems is New Zealand, the world's top sheepmeat exporter, which has made the European Union its top market for its lamb shipments.
Although New Zealand lamb enters EU markets under a fixed annual quota, the proportion of chilled versus frozen may vary. And for EU producers, that proportion makes a huge difference.
"There's a significant level of competition from New Zealand and there is an increase in the volume of chilled lamb coming from New Zealand, which competes directly with sheepmeat from the European Union," the livestock organisation official said.
- REUTERS