Bord Bia predicts market for sheep meat dependent on exchange rate

BORD BIA is predicting that the market environment for sheep meat this year will be largely dependent on developments in relation to the euro/sterling exchange rate and consumer demand.

Margaret McCarthy of the bord’s meat division, said Irish sheep meat availability is expected to fall by more than 6% in 2009, which will leave export volumes at just under 40,000 tonnes.

Ireland and France will remain the key markets for Irish sheep meat. In 2008, between them they accounted for 70% of total output. The domestic market now accounts for 30% of total output with annual consumption of around 20,000 tonnes.

France represents the destination for more than 50% of export volumes. Demand in both markets has been hampered by the current economic climate.

Sterling had significant effect on exports to France in the past year with volumes back some 25%.

“For the coming year, the market environment for Irish sheep meat will be largely dependent on developments in relation to the euro/sterling exchange rate and consumer demand,” said Ms McCarthy. “Irish exports to Northern Europe are expected to grow as is the amount of high-value boneless cuts.”

Lower consumption levels in Britain are expected to help maintain export volumes. Their competitiveness is likely to be maintained as sterling is expected to remain weak for most of 2009.

Tighter supplies are expected across all main EU markets. New Zealand is anticipating a fall of over 20% in 2008/09 production and export volumes.

“This is likely to put some pressure on filling their EU quota although, given the relative value of the market, it is likely to remain the principal focus for New Zealand exporters,” she said.