October 1, 2003

UK Beef Import Scheme Worries Irish Producers

Irish beef producers and processors are aghast that the UK may be changing their beef import scheme.

The UK currently accounts for over half of Ireland's substantial beef exports, around 260,000 tons this year.

But, with BSE on the wane and older cattle expected to be readmitted to the UK next spring, the Irish are anticipating a major displacement of their product.

"Based on the assumption that the UK government will allow all cattle born since August 1996 back into the food chain, that will boost UK supplies by 155,000 tons," said Bord Bia beef economist Padraig Brennan. This could mean a resulting 105,000 ton drop in the UK's import requirement.

Irish producers now have to find an alternative home for their beef, which is not an easy task. 

One possibility, however, is the resumption of exports to Egypt, which closed its doors to Irish beef in November 2000. Also, there is the likelihood of a growing live export trade. But this cannot be relied upon, especially with new commission proposals calling for restricted journey times.

Cheaper Brazilian and Argentinean beef also pose another threat. Beef production from these South American countries have trebled to 60,000 t in the past three years. This would be further boosted following an eventual tariff-lowering WTO deal.