April 25, 2007

Irish beef exports to Russia fall by 85 percent

Ireland's 35 million euro beef export trade with Russia has spiralled down in the past four months, Meat Industry Ireland said yesterday (April 24).

MII said year-to-date Irish exporters have contracted for only 1,200 tonnes of beef, representing 85 percent reduction in trade compared to over 8,000 tonnes in spring of 2006. 

MII spokesman Cormac Healy the decline has impacted market options open to processors, particularly for heavy cattle. He said the key reason for the drop in trade to Russia is the fifty percent reduction in export values imposed by the European Commission over the last two years.

He urged the EU to implement a clearer review of the export refund regime.

Healy cited the major increase in cow slaughtering in Britain is another factor that dampened demand for manufacturing beef.

Year-on-year, British cow beef production coming onto the market has increased by 120 percent or 68,000 head, he said.

Despite these factors, which negatively impacted trade this spring, Irish cattle prices year-to-date are still about 1 percent up on last year, in contrast to much of Europe.

Prices in Britain are up on last year by about 8 percent due to the drop of British prime beef production volume by two to three percent.