June 29, 2011

 

England faces chronic quality beef shortage

 

 

England is facing a chronic shortage of quality, affordable beef that's only serving to raise the already dominant consumption figures of white meats such as market leader chicken followed closely by pork.

 

Dramatic falls in beef production across the EU and a drop in imports from the former giant South American suppliers, coupled with an almost corresponding number of exports flowing out of the region, are largely blamed for the beef shortfall.

 

Liz Murphy, director of the UK's International Meat Trade Association, says the slump has left her more pessimistic about the future for beef in her country than at any time during her 36 years in the industry.

 

"There is a shortage of beef not only in the UK but across Europe. And it's only going to get worse," Murphy said.

 

From her base in London at the city's massive Smithfield meat market, Murphy heads an organisation that represents about 50 meat traders who will be responsible for negotiating about 180,000 tonnes of foreign beef into the UK this year.

 

Of this amount, Australia is only a very small player, although other exporters such as Argentina and Brazil are falling away in their consignments due to several factors, but mainly because of increased global demand that's providing major beef exporters with more viable alternative markets, many of which have fewer barriers to trade.

 

For example, in 2007 Brazil exported 27,428 tonnes of chilled and frozen beef to the UK. Last year that had plummeted to just 582 tonnes.

 

England's closest neighbour, Ireland, remains its biggest export supplier, exporting 64,092 tonnes last year, still a huge drop from the 153,221 tonnes it exported in 2008.

 

Jason Strong, Meat and Livestock Australia's regional manager in Europe, says the declining influence of our export competitors in the UK specifically and the EU as a whole means Australian beef producers are well positioned to exert a greater presence in the market like never before.

 

While he admits any increased volumes out of Australia won't go anywhere near solving the region's access to quality beef, his aims are to create Australia as the model exporter.

 

"We need to build our reputation as the preferred supplier of clean, high quality, great tasting beef that always meets its quota commitments at a viable price for the local market. Each time the quotas expand, I want EU traders knocking on our door first because they can trust us to deliver," Strong said.

 

He added, "South American beef dominated here because, despite inconsistencies in the quality of the product, they could guarantee volumes at a competitive price. Now that they can do neither it means there is enormous interest from the importers and traders here in Australian beef, especially grainfed."

 

Last year Australia sent 1791 tonnes of chilled and frozen grassfed and grainfed beef to the UK, our lowest total in five years.

 

Beef imported from non-EU countries like Australia is virtually all used in the catering and manufacturing sectors, with domestic producers called upon to fill local retail shelves.