UK beef sector to feel pressure from Ireland in 2016

UK beef producers could feel increased pressure from the Irish beef sector, if latest estimates for higher cattle slaughterings this year turn out to be correct. 

Bord Bia, Ireland’s food board, said it expected throughputs for this year to be up 50,000-80,000 head of cattle on 2015 levels.

Ireland accounts for a large proportion of the UK’s beef imports (68% – or 164,400t – in the year to November 2015, according to HMRC) and therefore has a major influence on the British beef sector. A strong pound and weak euro is also making Irish beef more price competitive. 

See also: Outlook 2016 – Profitable beef production a challenge

Multiple factors expected to boost slaughterings

The increased production was primarily due to growth in cow numbers in the past few years, said AHDB Beef and Lamb, and an increase in calf registrations in 2014 and 2015.

In addition, last year saw a 25% fall in the number of cattle exported from Ireland (60,000 head fewer by 20 December), due to relatively firm prices for calves, weanlings, stores and finishers, said the levy board.

“With more cattle on the ground for finishing in Ireland, carcass weights may well stay elevated this year – they were up 5kg on average last year,” said a report by AHDB Beef and Lamb.

“Consequently, Irish beef and veal production is certainly going to be higher this year than it was in 2015.”

UK beef sector must be aware of Irish production

“It is crucial in the UK we are aware of developments in Irish beef production, as it has the potential to affect the market, with the UK accounting for about half of Irish beef and veal exports,” said the AHDB report. 

A significant proportion of the increased production could be available to the UK market at competitive prices, said the levy board, with demand for Irish beef in some segments of retail, food service and manufacturing likely to stay strong.

Last year, Ireland became the first EU country to gain access to the US market since it imposed a ban on EU beef imports in the 1990s following the BSE crisis. Before the ban, Ireland was a major beef exporter to the US.