October 14, 2009

Beef exports could be boosted by a decline in European production over the next five years, according to Irish Food Board Bord Bia.

The predicted 7 percent or 500,000 tonnes decline in European beef production arises from expected lower output from major producers, including Britain, Germany and, to a lesser extent, France and Spain.

By 2013, Ireland will continue to have in excess of 450,000 tonnes available for export, helping to maintain its position as Europe's largest net beef exporter.

Bord Bia chairman Dan Browne said the prospects for the European beef market remain broadly positive.

This arises from the anticipated fall off in production levels and likely developments in relation to European beef imports over the medium term.

Browne said this will in turn "create a more positive environment to further consolidate the market position of Irish beef in Europe, which now accounts for virtually all of our exports."

Bord Bia said in addition to tighter European supplies, the volume of EU beef imports is likely to remain more than 15 percent below 2007 levels.

This is due to a relatively limited number of Brazilian farms being approved to supply the EU market and a drop in output among the leading South American beef producers due to the impact of drought and a switch to dairy and cereal production.

Bord Bia chief executive Aidan Cotter said there has been a considerable slowdown in the value of EU beef sales in 2009 due to a combination of lower volumes and a switch to cheaper cuts. Bord Bia anticipates that demand levels will recover gradually in line with the overall economic situation, as economies recover from the current downturn.

Increased market access remains a priority in terms of securing the maximum possible return from all products and particularly from by-products of the beef industry.

Bord Bia said it continues to work closely with the Department of Agriculture, Fisheries and Food and Irish embassies abroad to secure access in key markets.