October 14, 2008

It was revealed at Beef Expo Ireland in Kilkenny over the weekend that new opportunities are looming on global markets for the €2 billion (US$3.5 billion) Irish beef industry.

Agriculture Fisheries and Food Minister Brendan Smith, who opened the Bord Bia coordinated event at the new state-of-the-art Killkenny Mart, said EU beef production over the medium-term is estimated to decline by some 1 percent per annum.

With consumption expected to remain stable, the supply deficit within the EU is expected to widen, on current estimates, to some 800,000 tonnes by 2013. Minister Smith said the beef industry is a very important part of the Irish economy, employing 5,000 people directly and is supplied by 80,000 livestock farmers. Some 90 percent of the output is exported, making Ireland the largest beef exporting nation in the northern hemisphere and the fourth largest beef exporter in the world.

Last year, Irish beef exports were valued at €1.57billion (US$2.7 billion), accounting for one-fifth of total food and drink exports.

Bord Bia meat department manager Gerard Brickley, speaking at a gala dinner attended by over 900 people, said the top five beef export countries in the world that account for two-thirds of world trade, have reduced their exports by 8 percent this year and is likely to fall further next year.

He said the fundamentals of the world food market have changed and demand is now being driven by developing countries. The world's population will increase by 50 percent in the next 50 years, whereas productive land is declining at a rate of one hectare every 7.7 seconds.

He pointed out that by the end of the gala dinner, the world would have lost over 1,600 hectares, equivalent to 51 average-sized Irish farms.

Mr Brickley said the demand for beef is increasing and supply is declining, therefore a lot needs to be done to satisfy the world's growing population.