Food outlook good after enlargement

Restructuring the agricultural and food industries in the 10 new EU member states will be the key challenge facing European agricultural authorities, according to a report published yesterday by the European Commission.

The Directorate-General for Agriculture report also said the prospects for EU cereals, meat and dairy were relatively positive.

Cereal markets would benefit from growth in exports and increased uses for cereals within the EU. This would be enough to absorb the increase in cereal production, which would otherwise have put pressure on prices.