Welcome revival of beef exports to Egypt
Agriculture, Food and Marine Minister Michael Creed announced last week that agreement had been reached with Egypt for re-opening its market to Irish beef.
Once the necessary technical arrangements are in place, five Irish plants can commence exports to Egypt, the largest market in the Middle East with some 95m consumers.
Egypt banned Irish beef exports in November 2000 over BSE fears. It had been one of the largest markets for the product.
The recent agreement, which follows the opening of the Egyptian market to live Irish cattle in February of last year, also includes approval for beef offals and a limited approval for particular types of sheepmeat products.
Minister Creed said the search for new third country markets, a top priority for his department, has taken on an added urgency in the context of the challenges posed by Britain’s forthcoming exit from the European Union.
Last year saw the extension of market access to the United States for Irish beef as well as the opening of the Canadian, New Zealand and Israeli beef markets.
“Significant steps were also taken in terms of beef market access to China, South Korea and Vietnam amongst others and I look forward to further progress in 2017,” he said.
Farm leaders have welcomed the re-opening of the Egyptian market but they have also called for increased efforts to secure more outlets for both beef and live exports.
Greater emphasis is being placed on these calls this year because the number of cattle on the market is likely to increase by some 100,000, with a continuing increase in calf supplies.
Live cattle exports fell by 18% last year to some 147,000 head. This followed a 55% decline in cattle movements to Northern Ireland, as well as fewer exports to the Netherlands (-38%) and Italy (-24%).
More positively, exports to Turkey began in September, and these reached almost 20,000 for the year. Exports to Spain increased by 26%, totalling 36,700 head.
Joe Burke, Bord Bia’s livestock sector manager, told a recent meeting in Tullamore, Co Offaly, that French exports were highly competitive in 2016, and the Netherlands remains challenging.
While Spain is a key market for quality calves, EU demand has been impacted by cull cow supplies and so there is an increasing focus on international markets.
Mr Burke said a recent trade mission to Algeria has prompted interest from buyers to explore possibilities of buying livestock from Ireland.
Recent communications with these potential importers indicate a desire by them to visit Ireland and establish direct contacts with the Irish livestock industry.
Algeria imports an average of 40,000 animals per year, with France and Spain being the main two export partners, he said.
Teagasc has meanwhile warned that the Irish beef sector is facing into a difficult year. Supplies across the EU are forecast to increase. Demand for beef in the EU is not particularly strong and EU beef prices are likely to fall by up to 10%. Given that the UK market is particularly important for Irish beef exports, the weakness of sterling will also have an adverse impact on beef prices in Ireland which are forecast to decline by 12%, it said.
Irish Farmers Association president Joe Healy said a major national diplomatic initiative is needed to maximise every single market opportunity, especially for live exports.
“It is clear that there are real opportunities for Ireland in the live export markets such as Turkey, North Africa and continental Europe and all of these must be actively pursued in 2017,” he said.
In order to drive competition and deliver viable prices from the market, Mr Healy said there is a need to get the capacity of the live trade back up to 300,000 to 400,000 head.
Currently there are four boats cleared to sail. Another is set to be inspected. Three more are lined up for approval. All are essential to service the new and developing live export markets, he said.
Irish Creamery Milk Suppliers Association Livestock committee chairman, Michael Guinan, said the more markets that are available to Irish beef exports the healthier the outlook for the sector.
But securing new markets or ‘re-opening’ markets, closed for whatever reason, could not be seen as an end-in-itself.
“It cannot be stressed often enough that announcing new export opportunities is practically pointless unless primary beef producers can see a resultant improvement in their cattle prices.
"These increased export opportunities have to translate back into better prices for the farmers or they quickly become just irrelevant as far as ICMSA is concerned,” he said.
Mr Guinan said priority must be given to stepping up live exports and working through the obstacles — regulatory, licensing, shipping, financial — that have repeatedly stopped that trade being developed.
Irish Cattle and Sheep Farmers Association Beef Committee chairman Edmond Phelan said the re-opening of the Egyptian market was welcome and timely.
“We need all the markets we can get to facilitate increasing cattle numbers. However, farmers will be keen to see if this move will strengthen beef prices. That will be the real test,” he said.
Mr Phelan praised Mr Creed’s efforts to open live trade with Algeria. With extra cattle supplies, these ongoing efforts to secure new markets are vital.
He said that the ICSA would also like to see the same efforts put into the potentially lucrative Iran market
ICSA president Patrick Kent previously called on the Irish Government to re-open its Embassy in Tehran.
It followed a meeting he had in Dublin with the Iranian Ambassador to Ireland Javad Kachoueian.
