October 16, 2007

 

Beef supply reduction threaten Irish processors

 

 

The exit from winter finishing and a return to more seasonal beef production will cause serious difficulties for processors, according to an official from Bord Bia or Irish Food Board.

 

Gerard Brickley, manager of Bord Bia's meat division, said factories with year-round supermarket contracts in Britain and Europe will have difficulties to source stock next spring.

 

Brickley said farmers are going to fatten fewer cattle this winter and there is no sign that the plants are contract feeding.

 

Brickley described the shift back to a more seasonal supply of beef as a "terrible scenario".

 

He said any shortfall in supplies would have major implications for the processing plants.

 

It is expected that around 2,000 cattle will be cut per week in the system early next year. Supplies could even tighten further due to increased slaughter this autumn and the farmers' reluctance to finish cattle this winter.

 

Speaking at a cattle breeding seminar which was held in the Irish Cattle Breeding Centre last week, Brickley said Ireland will have to target the premium end of Europe's beef markets in order to combat growing competition from South America.

 

To achieve this, he said this would require farmers producing stock for specific retail outlets. Brickley said research indicated that these markets wanted lighter U and R grade cattle (to a maximum of 380 kilograms).

 

Brickley pointed out that by 2015 every second steak consumed in the EU will be sourced in South America and this will give Ireland a more intense level of competition.

 

However, the Bord Bia official said there was still chance for Ireland to grow exports within the EU.

 

He said demand for lower value cuts was on the rise with its accession to Poland, the Czech Republic and Hungary.

 

In addition, he pointed out that beef imports are forecast to rise sharply across the older member states.

 

British beef imports are expected to increase by 35pc by 2013, while Spanish imports are forecast to rise by 19pc.

 

The beef import markets in France, Italy and Holland are forecast to increase by 17pc, 10pc and 14pc respectively.