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.

Irish beef secures access to lucrative US market