March 13, 2012

 

US to re-open market for Irish beef

 

 

After the American authorities took a major step towards allowing exports from here to resume, five-star restaurants in the US could soon be offering grass-fed Irish beef.

 

Draft legislation published by the US at the weekend proposes that trade rules on beef imports be revised and brought into line with the approach taken on BSE by the World Organisation for Animal Health.

 

The legislation now goes for a 60-day public consultation but, if passed, it could pave the way for EU and Irish beef exports to the US to recommence for the first time since the BSE crisis erupted in 1997.

 

The move has been broadly welcomed by the Irish authorities and comes as a further boost to the booming farm sector.

 

"This is a very important first step in a process which I believe will ultimately provide a tremendous opportunity for high quality, grass-fed, Irish beef," said Agriculture Minister Simon Coveney.

 

Coveney said Ireland had been to the forefront in pressing the US authorities for a "level playing field" for EU beef.

 

Irish Farmers' Association President John Bryan said the move to reopen the US market for Irish beef would be a "major prize" and one that "should be pursued vigorously".

 

The possible reopening of the US market would not only be good news commercially but could be critically important from a "reputational perspective", according to Cormac Healy of Meat Industry Ireland. Healy pointed out that Ireland was the largest exporter of beef in the northern hemisphere and was constantly seeking new outlets.

 

While sources in the Irish beef industry predicted that the US market was unlikely to reopen until autumn at the earliest, they were not downplaying the significance of the news.

 

Developments in North America also follow hot on the heels of the successful visit of the Chinese trade delegation led by deputy premier Xi Jinping. It is widely rumoured in the beef sector that the possible opening of the lucrative Chinese market could also be on the cards.

 

It is understood that US officials identified Ireland as one of three European countries that could begin exporting beef to the US within months of the draft legislation being passed, citing the fact that the Irish beef industry already fulfilled a number of strict animal health criteria.

 

Healy said the US would not be a big volume importer of Irish beef.

 

"This market is going to be low volume, high value," he said.

 

He pointed out that low-grade beef for burgers and mince was supplied to the US from South America, Mexico and Australia. Healy said Irish exporters would concentrate on the high-end steak-cut market.

 

Joe Burke of Bord Bia said the US market had the potential to match Switzerland, where Ireland sells 4,000 tonnes of high value steak cuts. That trade is worth more than EUR30 million (US$39.5 million) a year.

 

"What Irish exporters will be after in the US is the high value niche markets. We'll be aiming to sell Irish beef as natural, wholesome, hormone-free, grass-fed beef," Burke said.

 

"The US market could offer opportunities to market prime hindquarter cuts from Ireland. It is hoped that our beef would fit into the 'natural' category, a premium niche reserved for hormone-free, grass-fed cattle," he added.