When the breakthrough was announced in January that Ireland was the first country in Europe to get beef into the USA since the BSE ban, the Irish Farmers Journal warned that the success of American exports would lie in getting forequarter manufacturing beef in and the top end-steak market was only part of the story.

Now, six months after the high-profile launch of Irish beef by Agriculture Minister Simon Coveney in Boston, New York and Washington, ABP chief exectuive Paul Finnerty has lamented the slow progress in opening export markets. He also referenced the need to fully access these markets, no doubt reflecting frustration that Ireland still cannot access the lucrative American market with manufacturing burger meat which is worth up to €1/kg more than the EU market. Access to the USA is limited to whole cuts or muscle.

The slow pace in accessing non-EU, or third country markets as they are often referred to, is reflected in information on Irish beef sales presented to the Beef Forum recently.

In 2014, a year when Irish beef production increased 12% on top of an increase of over 3% across the EU, it was essential to find external markets for this extra beef because the EU is at best a static beef market. While 6% of total sales to outside the EU may look like a small percentage, it is in fact a threefold increase from the previous year.

Philippines and Russia

An opening in the Philippines cleared out manufacturing beef that was overhanging the market in 2014 and sales to Russia were buoyant until they closed mid-year. Hong Kong and a number of African countries proved lucrative markets for lower-value products from the industry.

This progress to a still modest level of non-EU sales has been frustrated this year. Russia is gone, both directly and indirectly, as lack of sales of luxury cars with leather seats has weakened the hide market on top of losing beef sales. The Philippines has been oversupplied with cheap Brazilian product on the back of this currency being even weaker than the euro.

Hong Kong

Finally, Hong Kong has ceased being a trading point for low-value products due to a Chinese crackdown on the grey channels into china operated by Hong Kong-based traders. We can understand why the processing industry is impatient for the full opening of new markets and it becomes even more urgent with the projected growth in the volume of beef available after this year.

This is more than an issue for Irish beef processors. They and are to be commended for the fact that Irish beef is trading at 112% of the EU average, a dramatic improvement on a year ago. This is achieved through having a market available that matches the supply of cattle. Current prices should be seen as a starting point on which to build in order to sustain a thriving specialised suckler beef industry in Ireland.

Even with the worst milk price in years, revenue potential from milk remains way ahead of beef (accepting of course there are additional production costs). In order to keep Irish beef production in balance with market demand, new international markets need to be opened and developed now.

More cattle than markets available is a recipe for the nightmare of 2014 to be revisited and there is no point in having a crisis meeting 18 months from now wondering about what can be done.