According to this report, the medium-term perspectives for the EU cereals, meat and dairy markets appear relatively favourable.

The medium-term outlook of the EU cereals market continues to be favourable with the exception of barley. Domestic cereals use is expanding only moderately due to a less expansive livestock sector and gains in feeding efficiency in many new Member States. The conditions for exports remain positive and public stocks, mainly those of barley, should only gradually expand.

The meat markets have returned to a more normal situation after the extreme market conditions due to the second BSE scare, the FMD outbreak in 2001 and avian influenza in 2003. The current situation in the beef market - where consumption is higher than domestic production - is expected to persist over the 2004-2011 period. Pig and poultry production and consumption are expected to keep growing over the medium term, with increased trade flows between the new and old Member States.

The EU dairy sector is also foreseen to display a gradual improvement after the recent imbalance, with increasing cheese production and consumption and, at the same time, lower availability of butter and skimmed milk powder.