Autumn over-supply blamed for pulling down beef prices
Gerard Brickley, Bord Bia has told farmers that supplying the EU beef trade is the way forward, because non-EU markets will take less beef from Ireland, by 2008.
He was speaking at a seminar at Adare, Co Limerick where he also expressed concern at the immediate impact on the beef trade this autumn of a lifting of the OTM (over thirty months) ban on cattle in the UK food chain.
He said that the release of an additional 180,000 tonnes of beef, equivalent to 10,000 head of cattle per week, due to lifting the OTM ban in Britain would have a serious impact for the Irish beef industry.
He predicted that by 2008, the Irish beef industry should be marketing 45% of exports in Britain, 14% in the high value added markets in Italy, and about 9% in Holland, to sustain a viable future for beef producers in Ireland. He warned there is no future for exports to the international non-EU markets.
It appears likely that the percentage of Irish beef sold in Britain will reduce in 2008, but it will remain the most important outlet.
Adjust your enterprises, to produce animals designed for specific market requirements Mr Brickley advised.
He forecast that farmers will be rewarded for producing E and U grade animals, but they must have all year round supply.
He said “The present seasonality pattern of Irish production is going to be a serious problem for supplying EU markets. There is going to have to be something done about it, because the surplus supply in the autumn is bringing down the price.”
He also warned of the need for more innovation in beef processing and for a high level of farm efficiency. “It is over 100 years ago that the beef burger was introduced, and not very much was done since. It will be necessary to be more innovative in beef,” he said.
