A group of Chinese inspectors are expected to land in NI next week as part of a week-long mission looking at beef processing facilities across the UK.
The visit comes nearly a year after China formally lifted its ban on UK beef, which had been in place since the BSE outbreak in 1996. However, before shipments can begin, each meat plant must receive individual approval from the Chinese. It is this final stage in the process that is the purpose of the visit next week.
But in a break from convention, it is understood that if the Chinese are happy with what they see in the establishments visited next week, they will effectively grant market access for the entire UK beef industry (with other factories accredited for export by the Food Standards Agency).
It is different to the process in the Republic of Ireland (ROI), where the first plants were approved for export in April 2018 and, to date, seven in total can trade directly into China. The Chinese are due back in Ireland in August.
Since gaining approval, it is understood that Irish factories have exported over 2,000t of beef to China. But the trade is growing rapidly, with increased Chinese demand for imported meat proteins on the back of the devastating outbreak of African swine fever within the pig herd.
The market for imported beef in China is for frozen product, destined for foodservice and online outlets. It is mainly for lower-value cuts, such as forequarter, shins, short ribs and brisket, so can play an important role in balancing out the carcase, given our own preference for steaks, etc.
Unsustainable
While gaining new markets in China will be welcomed, NI beef finishers continue to face unsustainable returns from the current market, with prices paid still languishing in the low to mid-340s, and approximately 30p/kg behind prices from May 2018.
In the last few weeks, prices paid for top-end heifers in the ROI have moved ahead of the equivalent prices in NI.
€100m fund
Despite that, this autumn, beef finishers south of the Irish border are to receive their share of a €100m payout to compensate for losses due to Brexit.
Half of the money is coming from the Irish Government, and the other half from the European Commission. How it is actually divided out is yet to be clarified, but is almost certain to be contentious, with farmers insistent that factory feedlots should not be included. If it’s paid out on all cattle slaughtered between 1 October 2018 and 31 March 2019, this works out at €111/head.
£10m lost income
Meanwhile, analysis by the Irish Farmers Journal shows that NI beef producers suffered a major reduction in income over the past winter. Our analysis looked at prices paid for all cattle slaughtered from 1 October 2018 to 31 March 2019. If we apply 2017/2018 prices to those same cattle, it would have generated nearly £10m more in income, the equivalent of £41/head across prime cattle and cows.
The reduction in income became more severe as the winter progressed, and it is finishers producing cattle for this spring who have been hit the hardest.
Read more
African swine fever to cause unprecedented volatility in protein market
Beef exports to China will 'more than double' in 2019 – Creed
Chinese to fast-track inspection of Irish beef and sheep plants – Creed
A group of Chinese inspectors are expected to land in NI next week as part of a week-long mission looking at beef processing facilities across the UK.
The visit comes nearly a year after China formally lifted its ban on UK beef, which had been in place since the BSE outbreak in 1996. However, before shipments can begin, each meat plant must receive individual approval from the Chinese. It is this final stage in the process that is the purpose of the visit next week.
But in a break from convention, it is understood that if the Chinese are happy with what they see in the establishments visited next week, they will effectively grant market access for the entire UK beef industry (with other factories accredited for export by the Food Standards Agency).
It is different to the process in the Republic of Ireland (ROI), where the first plants were approved for export in April 2018 and, to date, seven in total can trade directly into China. The Chinese are due back in Ireland in August.
Since gaining approval, it is understood that Irish factories have exported over 2,000t of beef to China. But the trade is growing rapidly, with increased Chinese demand for imported meat proteins on the back of the devastating outbreak of African swine fever within the pig herd.
The market for imported beef in China is for frozen product, destined for foodservice and online outlets. It is mainly for lower-value cuts, such as forequarter, shins, short ribs and brisket, so can play an important role in balancing out the carcase, given our own preference for steaks, etc.
Unsustainable
While gaining new markets in China will be welcomed, NI beef finishers continue to face unsustainable returns from the current market, with prices paid still languishing in the low to mid-340s, and approximately 30p/kg behind prices from May 2018.
In the last few weeks, prices paid for top-end heifers in the ROI have moved ahead of the equivalent prices in NI.
€100m fund
Despite that, this autumn, beef finishers south of the Irish border are to receive their share of a €100m payout to compensate for losses due to Brexit.
Half of the money is coming from the Irish Government, and the other half from the European Commission. How it is actually divided out is yet to be clarified, but is almost certain to be contentious, with farmers insistent that factory feedlots should not be included. If it’s paid out on all cattle slaughtered between 1 October 2018 and 31 March 2019, this works out at €111/head.
£10m lost income
Meanwhile, analysis by the Irish Farmers Journal shows that NI beef producers suffered a major reduction in income over the past winter. Our analysis looked at prices paid for all cattle slaughtered from 1 October 2018 to 31 March 2019. If we apply 2017/2018 prices to those same cattle, it would have generated nearly £10m more in income, the equivalent of £41/head across prime cattle and cows.
The reduction in income became more severe as the winter progressed, and it is finishers producing cattle for this spring who have been hit the hardest.
Read more
African swine fever to cause unprecedented volatility in protein market
Beef exports to China will 'more than double' in 2019 – Creed
Chinese to fast-track inspection of Irish beef and sheep plants – Creed
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