Meat industry concern over market situation facing into new year

MEAT processors have claimed the gravity of the ongoing difficult market conditions for Irish beef does not seem to be reflected in recent trade comment and forecasts.

Meat Industry Ireland (MII), their representative body, said although Irish cattle prices in December continued to be 10% above the same month last year, it was extremely concerned about the market situation facing into 2009.

MII director Cormac Healy said it believes a combination of factors, largely outside the processing sector’s control, will have a severe negative impact on the beef export trade over the coming months.

He said the factors of most concern included the euro/sterling exchange rate, which has continued to move against the value of exports into Ireland’s largest market, Britain.

Another factor is that the economic recession continues to deepen across Europe with projections on retail spending and job losses worsening daily.

“Beef is not immune from these pressures and consumer demand continues to be focused on the best value offerings,” he said.

Mr Healy also said the market for hides continues to be extremely depressed, as a result of the impact of the global financial crisis on other sectors.

“MII conservatively estimates that, at today’s values, €45 million may be the cost to the industry in 2009 of the collapse in the hide trade alone,” he said.

Mr Healy said while the impact of the contaminated feed crisis on beef has been contained, there is no doubt that damage has been done to the Irish beef brand in some key markets.

“This will add to the huge challenges facing the industry in 2009,” he said.