September 27, 2007

Beef exports to UK on hold

Beef exports to United Kingdom are expected to hold for the rest of 2007, Ireland's Food Board Bord Bia predicted yesterday (September 26).

However, it said that much will depend on the extent of the renewed foot-and-mouth-disease outbreak. Before the outbreak, no significant price rise was expected due to a fear of a rise in British cattle disposals in response to higher feed costs.

Stronger demand for beef has been reported across the continent, reflecting tighter supplies in key markets while sales have picked up after a disappointing summer trade.

However, an increase in French young bull supplies and recovering poultry continue to impact on demand levels.

Bord Bia said beef prices in Russia have increased over recent months, which will help jack up Irish exports over the autumn period, albeit at levels below 2006.

Imports from South America have also slowed over recent months after a strong start.

Bord Bia said lower cattle supplies and better market demand have increased EU cattle prices by 4 percent since mid-August helped by good recoveries in Germany, Italy and Spain.

It noted that some retailers have expressed concerns that rising beef prices will adversely affect demand.

The Bord said this is going to make it difficult to secure improvement in returns without retailers switching the source of their beef supply or focusing more on pork and chicken.