Mercosur: A 1.5% oversupply that could cost Irish beef hundreds of millions

The EU consumer wants cheaper food. It is a misnomer to think consumers are broadly willing to pay a premium for food produced under higher standards, writes rural accountant Kieran Coughlan

A certain cohort will pay more for organic, free-range or grass-fed products, but the reality is most consumers vote with their feet and price is the deciding factor. File picture

The Mercosur deal has been approved by the majority of EU countries as of Friday last, although the deal is still subject to European Parliament approval. The deal will allow Brazil to export up to 99,000 tonnes of beef and 180,000 tonnes of chicken annually to European markets.

You’ll forgive me if I focus on the impacts for the beef industry as, to my mind, the deal is likely to have a greater impact on the Irish beef industry than the poultry industry, but by no means do I wish to ignore the implications for that sector. Irish farmers and their EU counterparts are, of course, concerned about the implications of cheaper imports into the EU.