Agriculture: New Markets for beef, lamb and Pig Meat 24th September 2013

The Minister for Agriculture, Food

Over the past decade, the profile of Irish beef exports has changed from reliance on volatile international markets to targeting higher-value consumer markets in the UK and Continental Europe. While international markets provide valuable options for Irish traders, the preponderance of Irish beef exports consists of chilled boneless product destined for other EU member states. According to Bord Bia estimates, the UK accounted for 52% of total export volumes in 2012 with virtually all the remainder going to Continental Europe where the main destinations (in order of importance) were France, the Netherlands, Italy, Sweden and Spain.

Irish beef is now listed with more than 75 high-end retail chains across EU markets. This wide portfolio of customers has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia’s differentiation and premiumisation strategy which focuses on the key attributes of Irish beef: environmentally sustainable, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality. Among Bord Bia’s key initiatives this year is the continued development, global promotion and marketing of its Origin Green initiative, designed to establish Ireland as a world leader in sustainably produced food and drink. Over 200 companies are currently working with Bord Bia to develop, and commit to, sustainability plans setting out clear targets in emissions, energy, waste, water, biodiversity and corporate social responsibility activities.

Recent data from the British Cattle Movement Service indicates that calf registrations in Great Britain in the first half of the year were 5% lower than in the same period in 2012. Partly resulting from a decline in the suckler beef breeding herd, non-dairy calf registrations were 7% down year on year. This downward trend will impact on future production of high-quality beef and signals that cattle availability is likely to remain constrained in the medium-term creating potential opportunities for Irish exporters.

Regarding the EU market situation, tight supplies and firm prices have attracted more imports to compete with domestic production. Commission data shows that overall beef and veal production for the first 6 months of 2013 was 5% down compared to the corresponding period in 2012. Imports for the period January to July 2013 were 8% up with Brazil, Uruguay and Australia shipping substantially higher volumes than last year. Future export performance will depend on economic developments, including consumer demand and price competitiveness, in our principal markets.

Whilst the UK, as the largest single destination, and Continental Europe together account for the majority of pigmeat exports, there has been a continued shift in recent years towards Third Country markets for pigmeat. This differs from developments in other meats, particularly beef. Approximately one-third of Irish pigmeat export volumes are destined for international markets, with China, the USA and Russia accounting for the majority of this trade. This trend has continued upwards in recent years as markets outside of the European Union become more attractive to exporters. The value of exports was in excess of €500 million in 2012 and this value has increased by 9% in the first half of 2013.

Irish sheep processors have made significant ground in growing exports into a number of key European markets such as Belgium, Germany and Sweden. These high potential markets are delivering a higher-value return and interest in the Irish lamb offering is growing as New Zealand lamb has become less available. Overall, exports of Irish sheepmeat for the first 7 months of the year stood at almost 24,000 tonnes, equivalent to a 4% increase on the same period last year.

I have been very active in developing relationships in new and expanding markets for beef, lamb and pigmeat, raising the profile of Ireland and guaranteeing confidence in Irish production and control systems; this provides a platform for long-term trading relationships into the future.

Since my appointment, I have led trade missions to China, the US and Algeria. I will shortly lead a trade mission to the Gulf Cooperation Council (GCC) countries in the Middle East. My Department continues to engage on market access issues with many countries, in collaboration with Bord Bia and Irish embassies’ personnel.

These initiatives have led to a number of notable successes in securing agreement to import from authorities in Singapore, Egypt and Iran which allow the import of Irish beef; with Singapore, South Africa, UAE, Canada and the Russian Federation-Customs Union for the import of Irish sheepmeat and with Australia and Serbia for the import of Irish pork.

There is a strong demand for meat globally and my focus is to enable Irish exporters to take advantage of the opportunities that arise.