May 18, 2007

British beef exports climbs up ahead of expectation

Following the lifting of beef export ban, beef shipments from the United Kingdom have reached 46,000 tonnes in the year, more than one-and-a-half times the amount of the previous forecast of 30,000 tonnes the British meat industry had in its re-entry on the international market.

The Meat and Livestock Commission (MLC) predicts exports will rise to 70,000 tonnes next year and then to 100,000 tonnes the following year.

MLC export manager Jean Pierre Garnier said that the ability to source more beef depended on the ability of the farmers to expand the herds, but this had been overshadowed to some degree by uncertainties over the reform of the Common Agricultural Policy and the World Trade Organisation discussions.

Most of the exports are cow beef and young bulls, but there is also a significant amount of high-quality beef being sold largely in the European markets. Garnier added that while the high-quality beef exports are producing good prices, there is also a potentially lucrative market for the edible by-products.

He said the industry's biggest challenge is the fifth quarter since many British plants have not taken edible fifth quarter into consideration.

While large meat processors are geared up to handle offal, Garnier noted many of the smaller plants need to invest in new cutting and preparation areas to be able to process the offal. He added that some of the edible by-products are muscle meat, which can be very profitable to the processor.

Garnier said there is a shortage of offal across Europe such as its need for 200,000 for tripe. He said the British beef has a "win-win situation" because throwing the offal will compensate the farmers and selling it would also be profitable.

The MLC has just launched a high quality beef promotion in Italy for "La Bistecca Perfetta," and it will be attending shows across Europe to bolster promotion of British beef.