'Timely boost' for beef exports

THE decision by the European Commission to increase refunds for beef exports to Egypt has been hailed as a timely boost for the meat industry.

For it comes just as the Egyptian market moves into the peak demand period for Ramadam, the Muslim festival, which this year commences on November 6.

According to Bord Bia’s market monitor, the increase in export refunds should help to facilitate the resumption of Irish beef exports to Egypt.

“However, overall beef imports are 40-50 percent lower than the last time Irish beef was exported to Egypt, with the market being principally supplied by competitively priced South American produce.

“The lower import demand is largely due to the weaker economic situation prevailing in Egypt over the last two years.” Bord Bia said the increase in refunds will help to restore the competitiveness of Irish beef on the market and provides a timely boost ahead of the key Egyptian demand period. John Smith, chief executive, Irish Meat Association, said while there were a number of technical issues outstanding, Irish meat companies will be using their best endeavours to reactivate the market. Arrangements will also have to be made to get Egyptian veterinary delegations sent to Ireland. Resolving these issues will give rise to delays before any production can take place.

“It is important to recognise that the market in Egypt for Irish beef is confined to beef from younger animals. Cattle are getting older as the year progresses.”

Mr Smith also said the overall economic climate in Egypt was difficult and there was a shortage of hard currency. “While good progress has been made on Egypt, the Irish Government must continue to push for the removal of the veterinary restrictions on beef exports to other traditional third country market outlets for Irish beef. Minister Joe Walsh described the decision by the EU Beef Management Committee as extremely significant for the Irish cattle and beef sector. Mr Walsh said the decision follows on from very strong representations, which he and his department had made to the commission over the past number of weeks.

An increase in the advance payments of cattle premia, which was also announced, will improve the cash flow of farmers by about €88 million.

He said he had sought this increase in order to improve the cash flow of beef farmers generally and, in particular, of those affected by the weather earlier this summer.

The IFA and the ICMSA both welcomed the increase in the export refunds.