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Report: EU Agriculture Outlook Generally Positive

European Commission releases report on prospects for EU agriculture.

A European Commission report detailing the prospects for EU agricultural markets and income predicts a positive medium-term outlook for EU cereal markets and for most meat markets, along with a 21% increase in agricultural income between 2006 and 2014.

The report finds that EU initiatives promoting biofuel use will help the domestic use of cereals to increase slightly. The report predicts ethanol production from grains will become a less marginal market outlet after 2010. Biodiesel demand is also expected to drive oilseed demand, and despite a projected moderate increase in oilseed production, the reports says the EU will continue to be a net importer of oilseeds.

Beef meat production is expected to continue its decline in the EU, though the report finds positive medium-term prospects for poultry, pig and dairy markets. Overall meat consumption is forecast to increase, with a 50% share held by pork products, followed by an increased poultry share of 28%.

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