Egyptian beef sales improve

IMPROVED prospects for beef sales to Egypt were reflected in export licences taken out last week for 150 tonnes.

The upcoming Christmas demand is also expected to maintain trade over the next month or so, according to Bord Bia sources.

To date this year cattle supplies to export meat plants are 6% ahead of last year; prime cattle prices are running 3% lower.

Young bull throughput has been over 60% higher since the start of July, in response to increased year round demand from processors.

Exports of Irish beef are expected to rise nearly 8% this year; most of the growth to date has been evident in sales to Italy, expected to increase by 75% on year earlier levels, helped by increased supplies of under 12 month beef.

More than 60,000 cattle will be slaughtered under 12 months this year, as specialised beef production systems boost Irish beef exports to the Continental EU markets by more than 25%.

Grass-fed beef for the UK and Northern Europe, and cereal-fed beef for Italy and Spain are among the other specialised systems bringing Continental export success.

“The emergence of close relationships between producers and processors to meet the needs of specific market segments has been a key contributor to the achievement of this growth”, said Michael Duffy, Chief Executive, Bord Bia.

In 2003 it is estimated that over 200,000 cattle, or 15% of prime cattle supplies will be sourced directly from farm systems that produce beef to exact specification required by premium customers.

In 2002 CMMS data shows that 32,000 cattle were processed of age with about two thirds of these being heifers. Production for this market will double this year to over.

There is a significant price premium available for the young bulls included in this year’s 100% increase in slaughter cattle under 12 months, according to Bord Bia. But a rise in supply could reduce the premium; anyone considering finishing young bulls should ensure prior to feeding that they have an agreed outlet.

Welcoming formal relationships in production schemes between farmers and processors, Michael Duffy said they provide a solid basis for future growth and higher returns from the marketplace.

He said further significant growth to Continental markets is needed due to the prospective ending of the OTM Scheme in the UK.