There’s an old adage that an Irish beef factory can only be profitable if it has a British factory too. ABP is investing in its offering in the UK, and with the impending split from the EU by the UK, positioning itself as a key supplier of high-quality beef to a demanding British market.

In 2015, ABP completed a £30m (€35m) investment at its UK flagship Ellesmere factory in Shropshire, to include a new combined heat and power (CHP) unit, a rainwater harvesting and recycling plant and a new abattoir. It is understood to be the first time that the Goodman group has built a new abattoir in over 60 years in business – to date, growth in processing capacity has come mainly from acquisitions.

At present, around 1,150 cattle are being killed through Ellesmere, although in time, there is the potential on site to take the kill to over 1,500/week. But with the UK and Irish abattoir sector not operating close to capacity, why invest at all?

“The UK abattoir sector has been sweated beyond its life. There is new technology available, new ways of working, and mechanisms which make the process more efficient. It does take substantial investment, but we can add value, particularly to the fifth quarter. We are very proud of this site,” confirmed Tom Kirwan, the chief executive of ABP’s UK business.

In an age when the word ‘‘sustainability’’ resonates with supermarket customers, ABP claims that its Ellesmere site is carbon-neutral. That mainly relates to the use of excess fat trimmed from carcases being rendered into tallow which is then used as a fuel in the CHP plant, providing both heat and power to the site.

“We are not aware of another beef abattoir more sustainable than ours anywhere in the world,” said Kirwan.

The other major attraction for a supermarket customer is the focus on animal welfare.

The new lairage is based on a similar setup at ABP Clones, with non-slip floors, herringbone-shaped cattle pens and curved walls, all designed to minimise animal stress. The plans for the new lairage were signed off by livestock handling guru, Temple Grandin.

Reduced pre-slaughter stress should mean improved eating quality, but what happens after slaughter can also have a significant effect.

Over the years, ABP has developed and patented its Ultra-Tender mark. The process involves following a defined chilling regime post slaughter, hip hanging the carcase and maturation over a 15- to 28-day period. “We believe we have perfected this in our business. Our beef is now in 100 Michelin star restaurants across Europe,” said Kirwan.

At Ellesmere, most of the beef is destined for Sainsburys. Employee numbers currently stand at 800. At the nearby ABP factory in Shrewsbury, Shropshire, there are also plans for a major upgrade to facilities over the next two years, costing upwards of £30m, and increasing the workforce by around 300, to over 1,000. “Planning permission is imminent,” confirmed Kirwan.

With the two factories combined, it makes ABP a significant employer in the area. The total UK workforce (including two factories in Northern Ireland) stands at 6,000, with the UK business turning over approximately £1.2bn (€1.4bn) per year across 15 sites, and killing around 500,000 cattle and 1m sheep annually supplied by 13,000 farmers.

Across the entire ABP business, turnover is now approximately €2.5bn per year, with sites in eight countries across four divisions of:

  • Beef and lamb (Ireland, UK and Poland).
  • C&D Foods (pet food business at multiple sites).
  • Olleco (supply and collection of cooking oils and renewable energy).
  • ABP Proteins (animal rendering mainly in Ireland).
  • Despite the diversity in product portfolio, beef processing remains very much at the core of the business.

    There is still a significant Irish identity and ethos within ABP, but also no doubt that the UK operation has firmly positioned itself as a supplier of British beef and lamb to British retailers.

    “There is a strong demand from British consumers for British product. That currently allows us to pay farmers here one of the highest beef prices in the world,” confirmed Kirwan.

    It also helps that the UK is less than 80% self-sufficient in beef, and probably less than 65% self-sufficient in steak cuts.

    The majority of beef imports into the UK come from the Republic of Ireland. So what happens post-Brexit – will the UK become a magnet for cheap beef imports from south America?

    “The consumer will decide. They are very pro-British at the moment, but also very discerning,” Kirwan said. He believes that when it comes to imports, they will look for equivalence of standards, which should benefit Ireland given that Irish farmers produce beef from the same breeds, in the same climate, and to the same quality standards as their British counterparts.

    ABP in the UK also has plans to undertake more research and development work.

    The company is sponsoring a new professorship in beef production at Harper Adams University. Part of the new role will be to act as a consultant to ABP UK to help deliver its beef research programme. A research farm near the university is being set up by ABP and will include facilities to feed up to 300 cattle per year in individual bins.

    There is also ongoing work with Genus into identifying superior beef genetics (mainly Angus) for use within ABP’s integrated beef farming business, Blade Farming.

    At present across Britain, approximately 20,000 animals are finished through the Blade system, with long-term plans to more than double this number.

    Dropped calves are bought from dairy farms, taken to rearing units (who follow strict animal health protocols) and then sold on to specialist finishers who receive a price in advance.

    The system works because it produces beef consistently within market specifications (virtually 100% in a 280kg to 340kg weight range).