February 25, 2005

Europe beef market sees stiffer competition

Competition for a bigger share of UK and European markets for beef, lamb and pig meat could reach epic proportions this year as home suppliers and exporters step up their efforts.

Quality Meat Scotland (QMS) is currently drawing up its promotional budget plans for this year while the English Beef and Lamb Executive (EBLEX) has started a GBP4.5 million campaign to raise the profile of its Quality Standard Mark.

South American and Irish suppliers continue to cast acquisitive eyes at markets in Britain and the rest of the European Union, where a beef deficit of at least 300,000 tonnes is expected.

Although its budget is unlikely to match the EBLEX spend, QMS - which spent about GBP1.5m promoting Scottish beef and lamb at home and abroad last year - will compete fiercely.

At the same time, beef producers in Brazil and Argentina, intent on gaining market share in the EU in addition to their major markets in the US, are also being watched warily, not least by Irish suppliers. The outlook for Irish beef in 2005 remains positive because of the deficit foreseen in the EU beef market - although the phased return to the UK market of over-30-months-old beef will have an impact.