Government defends Ireland's beef sector performance
Government sources say the divergence in price between Ireland and Britain is a result of the exceptionally strong sterling exchange rates in place for most of the year.
“British beef farmers are not gaining any more for their output than last year.
“However, Irish farmers are receiving prices on average 8% higher than last year and, therefore, the price difference has narrowed and not widened, if one removes the influence of currency fluctuations,” said Minister of State at the Department of the Environment, Community and Local Government Paudie Coffey.
Speaking in the Dáil last week when Agriculture Minister Simon Coveney and Minister of State Tom Hayes were absent, Mr Coffey said beef prices in Ireland for the year to date are up 8% compared to last year, and running 5% ahead of the EU15 average.
He said the most up-to-date figures show Ireland has exported more than €100 million of extra beef to Great Britain, compared to the same period last year.
He predicted sustained trade of beef to Britain in the coming weeks.
He said comparisons between Irish and British beef prices have to take into account the consumer preference for their own British product.
“This preference for local product is true of almost every beef market in the world.
"This also means that there is pressure from the British beef sector on their retailers to prioritise their produce over imports from abroad, including our Irish beef.
"This is a significant competitiveness challenge for Irish beef which cannot be overlooked when comparing prices.”
Mr Coffey said an estimated 1,300 tonnes valued at €9m has been exported to the new beef market in the US, up to November 2015.
“This is a strong start to this trade considering that the first exports only began in March 2015, and some of the plants were only approved for export as recently as September.
“Ireland has now become the second largest supplier of beef to the Philippines and supplied around 20% of its beef imports during the first quarter of 2015.”
“This has also been a good year for the mart trade as prices for calves are up 20% in the year compared to 2014.
"Beef breed calves are up 15% alone on 2014 prices and, again, this is a result of Northern Irish buyers using the strong exchange rate to purchase stock from the Republic.”
Mr Coffey was responding to a Dáil question from Fianna Fáil Agriculture spokesman Éamon Ó Cuív, who said when a currency loses value, as the euro has done, that should be to the advantage of exporters.
He said comparing prices in either euro or sterling shows that the differential between Irish and British beef cattle prices has widened from 70 cent last year to 110c this year.
Mr Coffey confirmed that the Department of Agriculture is engaging with the Chinese authorities on the technical details before trade will commence to China, following Ireland becoming the first and only EU member state to have the ban on boneless beef exports to China lifted for animals under 30 months.
He said the next beef round table on December 16 will see further progress on establishing producer organisations in the beef sector for the first time.
Commenting recently on beef prices, Agriculture Minister Simon Coveney said the best interests of the beef industry will ultimately be served by ensuring a continuing supply of high quality cattle to the processing sector, and, subject to market context, this objective can be best achieved by providing a reasonable level of remuneration to suppliers for their efforts.
“I would also encourage processors to ensure that their systems for determining price are as open and transparent as possible to the farmer, and that any adjustments or changes regarding specification criteria are clearly communicated and have regard to the realities of the production cycle.”.
