May 27, 2004

 

 

Ireland's Beef Exports Hit Five Year Highs

 

The introduction of mechanical grading in the summer would be an important step for the Republic of Ireland's beef industry towards securing its future as a high quality supplier of beef to EU consumer markets, Minister for Agriculture and Food, Joe Walsh, has said.

 

It was noteworthy that Ireland would be the first country to incorporate this modern method of classification into beef processing lines, which was yet another indication of the forward-looking approach by one of the country's primary natural resource industries.

 

Mr Walsh pointed out that producer prices remained at their highest level for four years, reflecting the strength of demand in the United Kingdom and across Continental Europe, where consumption of beef was continuing to rise.

 

"The market is now stable right across the Union, with no Intervention beef and with potential further opportunities now arising from the enlargement of the Union on May 1, 2004, providing the Irish beef industry with internal market access to 78 million new potential customers."

 

The Minister recalled that exports of beef to European Union markets had hit record levels in 2003 when Ireland shipped 415,000 tonnes of beef to EU markets, a 17 per cent increase on a previous record level set in 2002.

 

Overall, Ireland had exported 500,000 tonnes in 2003, valued at approximately EUR1.3 billion (£871 million) out of total production of 560,000 tonnes. This was the highest level of total exports since 1999, and 12 per cent higher than 2002.

 

The Minister praised the continuing efforts of the industry in broadening and expanding its market reach at EU retail level. This signifies a huge shift in the market orientation of the industry, away from international commodity markets and into the higher priced internal EU marketplace.

 

He also commended the work of Bord Bia (the Irish Food Board) in supporting this marketing drive and in helping maintain consumer confidence in Irish beef.

 

Mr Walsh said the increase in sales to Europe coincided with the emergence of a EU market deficit in beef for the first time in 25 years.

 

He pointed out that a strong recovery in consumption in Continental Europe, allied with falling production, has led to an increasing demand for Irish beef in both Britain and the Continent.

 

This recovery in exports to Continental EU markets "is a statement of confidence in the quality and safety of Irish beef".

 

Although Brazil is one of the world's largest producers of grassfed beef, the country has been increasing its reliance on the feedlot sector in recent years.

 

In 2003, there were 2.03 million cattle in Brazilian feedlots, with this number forecast to rise by 15 per cent to 2.34 million head in 2004 - representing around six per cent of cattle slaughtered.

 

Brazilian producers are becoming increasingly reliant on confined feeding as they devote more land to crop production (due to the high returns on offer) and less land to pastures for cattle grazing.