December 15, 2014

Irish firm ABP Food signs beef supply deal with Japan

Irish agribusiness giant ABP Food Group has signed a EUR4-million (US$ 4.98-million) supply deal with Japan, the first major beef contract for an Irish firm after Japan lifted its ban on Irish beef imports late last year. Japan imposed the ban in 2000 following a BSE [Bovine spongiform encephalopathy] outbreak. BSE is commonly known as mad cow disease.

The lifting of the ban opens the Japanese beef market that according to Irish food promotion state agency Bord Bia estimates could be worth EUR12-15 million (US$14.93-18.64 million) to Irish producers in the short to medium term.

"Our focus now is to grow the business and build the reputation of premium Irish beef in Japan," Mark Goodman, ABP Food international commercial director, said, noting that Japanese consumers "are among the most discerning in the world".

Goodman also noted that since 60% of the beef that the Japanese eat is the local Wagyu beef, which is seen as high-quality, ABP Food's entry into the Japanese market could be seen as "a testament to the competitiveness and quality of Ireland's grass-fed beef offering".

Goodman also acknowledged Bord Bia's "a major role" in "assisting [ABP] to communicate Ireland's sustainable, grass-fed hormone-free message to Japanese consumers".

ABP, which employs 8,000 people in 60 factories worldwide, is the largest beef processor in Britain and Ireland.

China ban

Meanwhile, the Irish government is also seeking the lifting of a ban on Irish beef imposed by China, which consumes EUR15 billion (US$18.655 billion) worth of beef annually.

A team of Chinese food safety inspectors on Wednesday started auditing Irish meat export plants and systems for the possible lifting of the beef ban by next year.

"It's only a matter of time before China becomes Ireland's second-most important market after Britain," said a bullish Agriculture Minister Simon Coveney.