Call for action on market access

Ray Ryan Agriculture Correspondent

The meat processors’ group said the difficulties being experienced in the beef sector are down to the seasonal downturn in demand together with the continued restricted market access for Irish beef.

Cormac Healy of the IMA said that while the British market remains an important outlet for Irish beef, the pace of recovery in sales to continental European markets was slow.

On international markets, Russia remains the only third country purchasing Irish beef.

The commercial reality is demand for beef is down across all markets due to different eating habits over the holiday season.

This seasonal downturn in demand is particularly evident in continental Europe and in Russia.

While the British market continues to take a significant volume of Irish beef, the higher priced retail end of the market is substantially preserved for British beef.

The majority of Irish beef exports to Britain are destined for the wholesale, manufacturing and food service segments of the market, where stiff competition from South American beef reduces potential returns.

Mr Healy said demand in Russia has fallen off dramatically due partly to the holiday season but also due to the greater availability of lower priced South American beef and more offerings of cheap pig and poultry meat. The recent weakening of the US dollar has also had a negative impact on trading conditions.

Efforts to regain access to traditional international markets for Irish beef in the Middle East, the Philippines or

Indonesia have so far proved unsuccessful.

The economic downturn in Egypt, a devaluation of its currency, availability of cheaper Indian and South American beef and current market access

conditions all contrive to make the African nation an unlikely serious market outlet for Irish beef in the short-term.

Mr Healy said an additional 110-120,000 tonnes of Irish beef must find a commercial market outlet this year compared to 2001. Last year, the impact of market closures was cushioned by the Purchase for Destruction (PFD) scheme, which removed one third of production in the first six months.

The Special Purchase Scheme, which accounted for 85% of cow slaughtering in the second half, also helped cushion the blow.