ASDA’s switch to 100% British-supplied beef could create opportunities for Irish supplies into manufacturing contracts such as McDonald’s and Burger King.

While industry sources said the decision by the UK supermarket chain to switch totally to domestic beef supplies will present serious challenges for the industry, beef sector insiders said the move could create supply opportunities in other areas.

The UK is just 75% self-sufficient in beef supplies, with British farmers producing 900,000t of the 1.2m tonnes of beef consumed in the country each year.

Ireland supplies 250,000t of the 300,000t of the beef imported into Britain annually.

We have to look at where the volume opportunities exist

However, while 40% of Irish beef exports, or close to 100,000t, was traditionally directed at the retail sector, ASDA’s decision could see this figure fall by as much as 20,000t.

It is anticipated that Ireland will now seek to grow its footprint in the German, Italian and Dutch retail sectors, as well as expanding beef sales into the food service end of the British market.

“We have to look at where the volume opportunities exist,” one beef industry official said.

The full impact is not being seen now because prices are high and demand strong

However, industry sources admitted that the reduced access to the British retail market was a real blow for Irish beef in the long term.

“The full impact is not being seen now because prices are high and demand strong.

“But we will feel the absence of ASDA,” another source said.

He pointed out that there was a significant differential between both the manufacturing and food-service prices in Britain, and those that can be secured from the supermarkets.

Britain is by far the best priced retail market in Europe

He added that retaining Ireland’s existing supply contracts into Tesco and Sainsbury’s was now vitally important.

“Britain is by far the best priced retail market in Europe [for beef]; we need to keep that foothold into it,” he said.