The number of cattle exported to Northern Ireland for direct slaughter and further feeding has reached a new low.

Analysis of Department of Agriculture, Environment and Rural Affairs (DAERA) figures show just 2,614 cattle moving north for direct slaughter in 2018 up to the week ending 8 September. This represents a reduction of 6,631 head on the 9,254 cattle exported during the corresponding period in 2017.

The drop would have been even greater were it not for a slight recovery in exports in the last three weeks, as reflected in the line graph.

Tighter supplies and a resultant lift in Northern Irish beef prices occurring at the same time as Republic of Ireland beef prices are falling has presented an opportunity for higher exports, with numbers moving north recorded at 415 head, 223 head and 131 head respectively for the last three weeks. Previous to this, average weekly exports were standing at just 56 head, with the 100 head mark exceeded just five times so far this year.

Stark contrast

The collapse in exports for direct slaughter has stemmed from two main factors, with the initial reduction in exports occurring in early 2016 as also reflected in the graph. This stemmed from issues with the processing of cattle born in Ireland and slaughtered in plants in the North. These animals became commonly known as nomad cattle as they were neither classified as Irish or Northern Irish, with the same issue also evident in animals exported north and finished on farms in the North. Under EU beef labelling legislation, they could neither be classified as Irish or UK cattle. To have a designated national identity, an animal must spend its entire life and be slaughtered in one jurisdiction.

The total number of cattle exported for direct slaughter reduced from an average of over 29,000 head during the period 2013 to 2015 to just 10,580 in 2016 and 11,188 in 2017.

There was a marginal reprieve in 2017, but exports followed a more erratic pattern and were influenced by fluctuations in the value of euro to sterling. This has also been a major player in numbers moving north in 2018.

It should be noted that Ireland remains the main source of beef for northern processors but instead of beef moving north on the hoof, it is now moving north on the hook. Bord Bia analysis for the first six months of the year shows beef exports to Northern Ireland recorded at 14,000t.

The arrival of processing issues with nomad cattle has also hit exports of live cattle for finishing on northern farms and has also curtailed the trade of breeding animals. Table 1 details exports by category of stock which shows significant reductions in exports of weanlings, stores and also aged stores, which are included in the finished cattle category (all animals over 21 months of age) with total numbers moving north more than halving.

Steady imports

The number of cattle imported from Northern Ireland for direct slaughter in southern plants is running slightly ahead of 2017 levels. The flow of cattle south has slowed in recent weeks on the back of tighter supplies in the north but at 5,954 head is still running 706 head above last year’s levels.

Comment

EU beef labelling legislation was developed in the aftermath of the BSE crisis which spread from the UK to the rest of the EU in 2000. It enabled a national identity be allocated to beef originally, but now sheep and pigmeat as well, where an animal spends its entire life and is slaughtered in a single country.

While it hasn’t been an issue on the continent, the UK retail and food service customers have refused to accept mixed-origin beef (UK and Irish) while perfectly happy to take beef from either country. Efforts by individual companies to alter this policy have been unsuccessful.

The only option to circumvent this anomaly is to enable an animal carry its national identity throughout its life, based on where it is born. Therefore, a calf born in the west of Ireland would be able to retail its Irish identity even if it is sold to a buyer anywhere in the EU, including the North, and the issue with “nomad” cattle would be solved.