The objective of this parl of the project (i.e., subtask 2.3) was to develop a tool for simulating policy reform in the beef and veal sectors of the European Union. In order to provide an assessment of the impact of such poiicy reforms, at the national level and at the European level, sectoral econometric models have been developed. Changes in these beef and veal sectors are induced by the market conditions, and by policies. These policies may apply directly on these sectors, or they may affect related sectors. A fair representation of the beef and veal sectors nrust include these main deteminants, and simultaneously tire dynamic interactions among categodes of animals, that is the demographic structure of the cattle and the associated biological constraints.