More sales of 'Greenfields' beef
By James Campbell
Northern Ireland beef factory operators and the LMC are working on a new scheme to market NI beef at a premium in Europe as soon as exports are allowed to begin under workable conditions.
Journal enquiries indicate that there are plans to market NI beef under the "Greenfields" brand in other European countries as well as in the Netherlands. It is proposed that this will be done through an exclusive arrangement with particular retail groupings in each country in the same way that the Albert Heijn group has the exclusive use of the "Greenfields" label in Holland. That trade was built up on the back of the Farm Quality Assurance Scheme introduced by the LMC in the early 1990s and FQAS will continue to be a key part of any expansion of "Greenfields" branded sales.
While the £ sterling continues to be very strong relative to the euro, an immediate benefit of exports resuming would come from the better Continental market for red offal (worth around an extra £10 per beast).
If sterling weakens significantly then other opportunities in Europe could be exploited.
A major hitch in the whole operation could be the serious lack of eligible stock because NI herd owners have failed to register calf births and confirm movements of cattle between herds within set time limits.
The case for NI beef exports to be allowed under less restrictive terms than the so-called Date Based Export Scheme (DBES) will depend on the incidence of BSE cases this year in NI and how the level of BSE here compares to other EU Member States.
For cattle born in 1996, the latest EU surveillance figures indicate that the UK has a lower incidence of BSE than five other EU countries.
A continuation of this trend should strengthen the case for NI beef exports to recommence under less restrictive terms than the DBES currently requires - for example the total dedication of an abattoir to slaughtering for export.
However until export restrictions are relaxed and while sterling remains strong the NI beef industry is greatly dependent on the market in Britain.
Journal enquiries indicate that the Farm Quality Assurance Scheme is an absolute essential for optimising the sales of NI beef in Britain. Large volumes of NI beef which are marketed through British supermarkets obtain better prices than the commodity beef sales via Smithfield market or the catering trade. Farm Quality Assurance attaches an "added value" so far as the supermarkets are concerned. The next step in this "added value" is likely to be "whole of life" farm assurance for particular cattle for which there is a guarantee of the animal having been born, raised and finished on "quality assured" farms.
Scottish beef processors are close to offering this "whole of life" farm assurance to their supermarket customers.
Marketing opportunities for beef in Britain are increasing due to the reduction of the cattle herd there in the FMD culls last year.
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