January 20, 2006

Strong demand for Irish beef in EU but obstacles loom

Live cattle exports from Ireland increased by more than 40 percent during 2005 and similar volumes are predicted for 2006 according to Bord Bia, an agency for promoting Irish food.

Officials believe that strong EU beef consumption will provide steady growth this year, despite major unpredictable market factors such as whether the EU ban on Brazilian beef continues and the impact of resumed British beef exports to the EU.

Brazil achieved a record year in fresh beef exports during 2005, despite the outbreak of foot and mouth disease (FMD) in October. It exported 1.085 million tonnes of beef for the year--a 17 percent increase in volume compared with 2004 levels. The Brazilian beef market had taken a severe hit in the last quarter of 2005 and it is expected that full and partial export bans will remain throughout the spring of 2006, according to the South American Meat Market Report

A shortfall of 350,000 tonnes is expected in Europe in 2006, even after the resumption of beef supplies from the UK, according to Bord Bia.

Irish exporters are expected to lose about 25,000 tonnes of the beef trade to the UK.

In 2005, Irish meat and livestock exports, with a combined export value of EUR2.1 billion, accounted for about 30 percent of total Irish food exports.

Irish food export to the EU market is on the increase. The EU market now accounts for 92 percent of all Irish food exports.

Bord Bia chief executive Aidan Cotter said access to the EU market is a critical issue in ongoing WTO negotiations. If current plans are approved, beef imports to the EU would rise to 19 percent of the market by 2013, and beef prices would fall by 10 percent.