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EU & UK Market Pulse: Labour, Disease, and Costs Shape Sector Strategy
Published 9 days ago in News

EU & UK Market Pulse: Labour, Disease, and Costs Shape Sector Strategy

Stricter UK visa rules, persistent ASF in Eastern Europe, and high input costs in the West are forcing operators to adapt their business models.

Profile picture of Bo Pedersen
Bo Pedersen
Chief Revenue Officer

UK: New Visa Rules Threaten Labour Supply

The British meat processing and farming sectors have voiced serious concerns over recent changes to the UK's Skilled Worker visa scheme. New rules that took effect in July raise the skills threshold to a graduate-level equivalent, effectively removing crucial roles like butchers and farm managers from eligibility. Industry bodies like the British Meat Processors Association (BMPA) warn this will cut off a vital supply of overseas labour, making food production "increasingly difficult" and exacerbating the staff shortages that have challenged the sector since Brexit.

Implications & Suggested Actions:

  • Farmers & Processors: The challenge of recruiting skilled staff is now critical. This makes investing in apprenticeships and domestic training programs more important than ever. Businesses should urgently review their long-term staffing strategies and consider how to make roles more attractive to the local workforce.

  • Wholesalers: Be aware that labour shortages at processing plants could lead to reduced capacity and potential disruptions to supply. Maintain strong communication with your suppliers to anticipate any challenges.

  • Retailers: The knock-on effects of labour shortages can include higher production costs and potential gaps on shelves. Supporting industry-wide initiatives to promote careers in food production can help secure the future of the domestic supply chain.

Germany: Scarce Cattle Supply Drives Record Beef Prices

The German beef market is experiencing historically high prices driven by a significant decline in cattle numbers. The national herd is at an all-time low, with slaughter figures down nearly 6% in early 2025 compared to the previous year. This domestic scarcity, combined with strong demand, has pushed prices for slaughter cattle to record levels. While this benefits farmers with animals to sell, it creates margin pressure for processors who have seen revenues hit by the loss of some export markets due to previous FMD-related restrictions.

Implications & Suggested Actions:

  • Farmers: The current market offers exceptional returns. This is an ideal time to sell, but also a moment to strategically plan for the future, as restocking will be expensive.

  • Processors: With domestic supply so tight, securing cattle is the primary challenge. Those who have strong, long-term relationships with farmers will be best placed. Explore opportunities for efficiency and adding value to make the most of expensive raw materials.

  • Wholesalers & Retailers: Expect wholesale beef prices to remain very high. This will likely necessitate price increases for consumers. Focus on marketing the quality and provenance of German beef and consider offering a wider range of cuts to provide options at different price points.

Romania: ASF Continues to Devastate Pork Sector

Romania’s pork industry remains in crisis due to the relentless spread of African Swine Fever (ASF). The country has had the highest number of ASF outbreaks in the EU since 2017, leading to the culling of over 1.8 million pigs. As a result, domestic production now covers only 45% of national consumption, down from 70% before the crisis began. This has turned Romania into one of the world's top pork importers, with imports costing the national economy over a billion dollars annually and creating a massive trade deficit. The Association of Pork Producers of Romania (APCPR) is calling for urgent government action to control the disease.

Implications & Suggested Actions:

  • Farmers: For producers in Romania and neighbouring regions, the highest level of biosecurity is non-negotiable. The persistence of ASF highlights the extreme risk the disease poses to any operation, large or small. There is little room for error.

  • Processors & Wholesalers (EU-wide): Romania’s dependency on imports creates a significant, albeit challenging, market opportunity for pork exporters in other EU member states. However, any business trading with Romania must be acutely aware of the risks and ensure all transport and logistics have watertight biosecurity protocols to prevent carrying the disease back to their home markets.

  • Retailers (Romania): The reliance on imported pork means supply chains are longer and potentially subject to more volatility. Building stable relationships with reliable EU suppliers is key to ensuring consistent product availability for consumers.

Poland: Government Aids Farmers with Fuel Subsidies

To help mitigate high production costs, the Polish government is continuing its support for the agricultural sector by offering rebates on the excise tax for diesel fuel. In 2025, the reimbursement rate is set at PLN 1.46 per litre. This measure aims to lower the financial burden on farmers and enhance the competitiveness of Polish agriculture. While the subsidy is welcomed by farmers, especially smaller operations, it is part of a broader European debate on the sustainability of fossil fuel subsidies.

Implications & Suggested Actions:

  • Farmers (Poland): Take full advantage of this government support to manage your input costs. Ensure you follow the correct application procedures to receive the fuel rebate, as it provides a direct financial benefit and improves your operating margin.

  • Processors & Wholesalers: The fuel subsidy helps maintain the viability of your farm suppliers, which in turn supports a more stable domestic supply chain for raw materials. This can contribute to more predictable input costs compared to regions without such support.

  • Stakeholders (EU-wide): This policy highlights the different approaches national governments are taking to support their agricultural sectors. For businesses operating across the EU, it's important to be aware of how these varying subsidy levels can impact the competitiveness and production costs of farmers in different member states.

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