Europe exports to be beefed up as Britain lifts ban
The Blair Government has announced it is to phase out a ban on meat from cattle over 30 months entering the food chain and replace it with a robust BSE testing system.
Meat and Livestock Commission estimates in London suggest the move, following a big drop in the number of cattle being diagnosed with BSE, could release an additional 185,000 tonnes of beef to the British market in a full year.
Ireland is the main supplier of prime beef to the British market, exporting 251,000 tonnes valued at €750 million last year, representing 58% of this country’s €1.6 billion beef export business.
Bord Bia estimates, however, that the British decision to lift the Over Thirty Months (OTM) scheme could result in a diversion in the region of 70,000 tonnes of Irish beef to international markets.
Bord Bia has pointed out that along with the Irish beef industry it has been gearing up for this challenge by solidifying its market position with customers in Britain and by continuing to penetrate markets in Europe.
“Bord Bia is in constant contact with our key customers in the market and is confident we can maintain a strong market position in British supermarkets as the overall availability of British prime cattle reduces in the medium term.
“This confidence is based on the strong service levels provided by the Irish industry and boosted by the investments made by recent central packing and added value facilities to serve leading retailers.”
Bord Bia said that its consumer research demonstrates that British consumers are increasingly attracted to an Irish beef offering.
This is evidenced by the fact that an Irish beef promotion in the market is achieving record customer response levels.
The major challenge will be to further develop new and additional premium customers in Continental Europe, which is achievable in the context of a growing EU deficit in beef.
“This will require a major marketing and promotional drive by Bord Bia in partnership with the Irish industry. The track record of the industry in penetrating Continental Europe has been demonstrated particularly in the last year with exports projected to reach a record level of over 170,000 tonnes,” Bord Bia said.