January 26, 2011

Spanish beef struggles for competitiveness, independency

Spain's beef industry is having a difficult time to compete globally as it remains dependent on sourcing animals and feed abroad, according to Bord Bia.

But with the ongoing volatility of prices, the sector is becoming unstable and uncompetitive.

This has lead to a fall of more than 10% on the volume of beef produced during the 2008-2010period.

The drop in domestic demand has led to a 12% jump in exports of Spanish beef. Imports have increased marginally as retailers search for more competitively priced product.

The Spanish beef sector has its sights set on the export market potential for both live cattle and beef to international markets such as the Lebanon, Egypt, Morocco and Turkey.

Irish beef and livestock managed to compete in this aggressive environment last year. However, with tighter Irish supplies and prices running ahead of last year, the market is likely to be challenging for exporters, as consumer spending seems unlikely to improve.