What’s involved in the beef supply deal announced between Slaney and Lidl in the US this week?

The most typical business for Ireland in the US would be for commodity beef, albeit a very good commodity beef market in terms of the prices that it’s able to pay. But this deal is a bit of the icing on the cake in the sense that this is a first time we will be sending fresh beef for sale in the US retail market.

Where will Slaney Hereford beef be sold in the US?

Lidl’s 10 new stores will open this week specifically in Virginia and the two Carolina’s, North and South. The first Slaney Hereford product is already in the US for sale this week. I think what’s really interesting about this deal in terms of Ireland Inc and our portfolio is that we can deliver this. This will be the first taste of fresh Irish beef that the US consumer has had and I hope they like it. It’s very different from what they’re used to.

How big a deal could this be for the Irish beef industry?

I don’t want to overplay it as it’s not going to be big volumes starting off with but it’s a very good thing to have happened for everyone in the industry. The beef industry, along with Bord Bia and the Department of Agriculture, including its veterinary side, have worked hard to get authorisation for Irish beef to the big burger market in the US or beef intended for grinding (mince). We have made huge progress on it and I think that will bear fruit pretty soon.

Do you have growth targets for the US market?

It’s so early right now that it’s very, very difficult to put a target on it. We’re handling 400 cattle per week as part of our premium Hereford beef programme. But we need to have this premiumisation as part of the portfolio for Ireland Inc. In the old days, Ireland was well below the European average beef price but thankfully we’re above it today, which is where we need to be for the economic sustainability of Irish farmers.

How different is it to supply the US retail market?

The process is the very same as if we were shipping to Lidl in the UK or Holland or anywhere else. We ship the primal ribeye or striploin cuts to the central retail packing business over here in the US that Lidl have partnered with. They will then put the meat into individual cuts or two steaks per tray and distribute to the Lidl US stores.

How important is access to new markets like the US to offset the impact of Brexit for Irish beef?

It’s very good what’s happening here and the Minister is working hard along with the Department, which is the key thing in terms of market access to places like China and South Korea. But I would keep saying that we don’t want to lose any of this market we have in the UK that is taking 55% of all Irish beef. We’re in love with that market.