€15m deal as Irish beef returns to US

ABP Food Group has signed a deal with Sysco, the first deal to supply beef to the US since the 15-year BSE-focused ban on European beef was lifted a year ago.

The deal will initially see ABP supply €15m of Irish beef annually to Sysco’s steak houses and restaurants in New York and Boston. The relationship between ABP and Sysco was facilitated by Irish food distributor Pallas Foods, a subsidiary of Sysco.

ABP chief executive Paul Finnerty said: “We look forward to growing our partnership with Sysco, who will be key in helping us bring our sustainable, grass-fed, hormone-free Irish beef to the plates of US consumers. We greatly appreciate the efforts of Tadhg Geary and Pallas Foods in helping build this international partnership.

“Our initial focus will be on the north-eastern region of the US where we will seek to establish Irish beef in a sustainable, measured way.”

Sysco operates 194 distribution facilities serving 425,000 US customers. Last year, the company generated sales of more than $46bn (€40.5bn) and has 50,000 employees.

The deal was unveiled in New York as part of a trade mission to the US, led by Agriculture Minister Simon Coveney. The visit continues in Washington today, with a number of political meetings and beef promotional events.

Mr Coveney said: “This deal between ABP and Sysco represents the first sale of Irish beef into the US since we regained access to the market and no doubt will be the first of many such deals for Irish companies.

“ABP can be very proud and I would congratulate Pallas Foods also on their role in this,” he said.

Mr Coveney is due to meet members of the Irish diaspora in New York, including Kieran McLoughlin, chief executive of the Ireland American Fund. He is also set to meet leading young Irish business people based in New York.

Bord Bia chief executive Aidan Cotter said this week’s trade mission will focus on the north-east, midwest, and south-east regions of the US, with a focus on specialist meat distributors, fine dining chefs, and premium grocery chain buyers.

IFA president Eddie Downey said the significance of the opening of the US market will be judged by farmers securing improved beef prices from the marketplace in 2015.

ICMSA president John Comer said the “first mover advantage” that might accrue to the Irish campaign was potentially very substantial. He said the opening up of the US market would mean that Irish beef’s over-reliance on the UK market could be greatly reduced, with farmers’ prices less vulnerable to manipulation and downward management by factories.

The US cattle herd has fallen to its lowest number since 1952. US farmers are expected to keep cattle numbers down again this year, conscious of predictions of further US droughts.