Opinion: Return to US a defining moment for the Irish beef sector
Irish beef is finally heading back to the United States, presenting a great opportunity for processors to gain a foothold in the biggest market in the world.
June 2014 picture from the visit of Tom Vilsack (right), US Secretary of Agriculture, to the Kildare farm of Stephen Morrison accompanied by Minister for Agriculture, Food and the Marine, Simon Coveney.
The announcement by Minister for Agriculture Simon Coveney today of the opening of the USA market for Irish beef is a “red letter” for our farmers and factories. In time it could become as significant as joining the EEC back in 1973.
The USA has been correctly identified as a market for high quality meat cuts. While that is important, it is only part of the potential: the real wins are to be found in the less glamorous manufacturing beef sector. This is mainly the forequarter of the animal and is used for mince, burgers and diced beef which now accounts for over half of all beef sales in the UK.
The drop in the USA cattle herd to its lowest level since the 1950s has driven prices to record levels and presented a great opportunity for countries like Ireland to pick up business across the range, not just at the top end. In 2012 USA farm gate beef prices were 38c per kilo behind Irish prices. However, last November saw prices jump to a massive €1.68 kilo above Irish prices. That is an incredible €2 per kg swing over the past two years.
ADVERTISEMENT
Prices available for 90vl (visible lean) manufacturing beef are way ahead - perhaps by as much as a euro per kilo - of anything available in Europe. Given that this beef is what makes up the biggest part of the carcase, we can see how this has the potential to be a defining day for the Irish beef industry.
Well done Minister, you have done your part. Now it is over to our processors to develop this market and return a much needed new year boost to our beleaguered farmers.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
However, if you would like to share the information in this article, you may use the headline, summary and link below:
Title: Opinion: Return to US a defining moment for the Irish beef sector
Irish beef is finally heading back to the United States, presenting a great opportunity for processors to gain a foothold in the biggest market in the world.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
The announcement by Minister for Agriculture Simon Coveney today of the opening of the USA market for Irish beef is a “red letter” for our farmers and factories. In time it could become as significant as joining the EEC back in 1973.
The USA has been correctly identified as a market for high quality meat cuts. While that is important, it is only part of the potential: the real wins are to be found in the less glamorous manufacturing beef sector. This is mainly the forequarter of the animal and is used for mince, burgers and diced beef which now accounts for over half of all beef sales in the UK.
The drop in the USA cattle herd to its lowest level since the 1950s has driven prices to record levels and presented a great opportunity for countries like Ireland to pick up business across the range, not just at the top end. In 2012 USA farm gate beef prices were 38c per kilo behind Irish prices. However, last November saw prices jump to a massive €1.68 kilo above Irish prices. That is an incredible €2 per kg swing over the past two years.
Prices available for 90vl (visible lean) manufacturing beef are way ahead - perhaps by as much as a euro per kilo - of anything available in Europe. Given that this beef is what makes up the biggest part of the carcase, we can see how this has the potential to be a defining day for the Irish beef industry.
Well done Minister, you have done your part. Now it is over to our processors to develop this market and return a much needed new year boost to our beleaguered farmers.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS