Live trade main Irish interest in Spain
Cecilia Ruiz, Manager, Bord Bia Madrid
So far this year Spain has imported 87,302 live cattle from Ireland (up 76% or 37,710 head on 2017). These are mainly Friesian calves from the dairy herd, together with some Angus calves and some mainly Angus breeding cattle, although there has been some increased demand for Hereford also. The strengthening of the Spanish beef processing sector together with the increase of livestock exports from Spain to north African countries are two of the main drivers of this demand.
The increases in beef production and live exports from Spain have led to a bigger demand for Irish calves for finishing in Spanish feedlots under 12 months of age for pink veal, or to be exported live.
Despite the volatility of Spanish livestock export markets, Bord Bia expects this demand to remain strong in 2019.
With a breeding herd of 2m cows, Spain needs to import more than 580,000 cattle per year. Spain’s cattle output is around 2.4m head (633,000tn of beef), while annual live exports from Spain are around 185,000 head with the main markets being Libya, the Lebanon, Algeria, Egypt, Italy, Portugal and France.
Market cools in the Philippines
Ciarán Gallagher, manager, Bord Bia south and east Asia (Singapore)
Although the Philippines has been a growing market for Irish beef and offal exports in recent years, it is expected to show a substantial decline in 2018. This is because there is a growth in demand for lower-value proteins, in particular pigmeat and poultry with lower-value Indian buffalo meat also providing competition in the marketplace.
This is partly driven by affordability as the Philippine Peso was significantly weaker when compared with the euro in 2018 than last year. The market will, however, continue to be one of Ireland’s leading third-country export destinations, particularly for lower-value beef products. Medium- to long-term prospects are still positive and will offer opportunity as the trading environment changes. Irish exports should get a boost in 2019 with the introduction of an EU promotional campaign for beef and pigmeat.
Factory approval limiting
business in China
Conor O’Sullivan, meat market specialist, Bord Bia Shanghai
The six Irish beef factories that are approved for China are doing business for frozen beef cuts, with good demand for feather blade, short-rib, shank, short-plate and rib fingers in Chinese foodservice and online. Being limited to just six factories is a constraint and as more become approved, it is expected that there will be sufficient demand to grow Ireland’s beef exports to what is now the world’s fastest growing market for beef.
Apart from getting factories approved, doing business with China is a challenge because of the level of separation required in factories as is the limitation of approval to frozen beef from cattle under 30 months old. Irish beef exports to the end of October had reached 949t according to the CSO, with commercial trade having just started in August this year.
Pigmeat
Asian swine flu is a significant concern in the market currently. Official figures report that 600,000 pigs have been culled to date and major producers have reported lower slaughter weights due to animals being processed younger as Chinese farmers look to avoid the risk of infection by slaughtering their herds sooner than planned. As a consequence, Rabobank estimates that pigmeat production will fall in China next year. While this may signify a positive outlook for exporting countries, people could choose to eat less pork and any reduction in consumption of pork in China would seriously affect demand from countries supplying the Chinese market. Paradoxically, a less obvious outcome could see an increased consumer demand for alternative proteins such as poultry or beef if there is any rejection of pigmeat by Chinese consumers.
Ireland supplies 71%
of UK beef imports
Emmet Doyle, meat market specialist, Bord Bia London
Brexit has dominated our news bulletins throughout 2018 and the continued weakness of sterling is a drag on prices for Irish exporters trading in euros. Notwithstanding currency challenges, 2018 is looks like being another strong year for Irish beef exports to the UK with the value of exports increasing by 5% while still maintaining volume share (YTD October 2018). Irish beef accounts for 71% of UK beef imports and is the only imported beef offered in the three largest supermarkets. This and a continued strong presence in the food service sector reflects just how important the British market is for the Irish beef industry as Brexit is about to become a reality at the end of the first quarter of 2019.
Consumer trends
As well as the Brexit threat, there has been slip in consumer demand for beef. In the latest (YTD November) figures, UK retail beef volume sales have declined 2.2% according to data produced by Kantar. UK grocery consumers are continuing the move away from traditional roasts and instead are looking for quick versatile meals, reflected in the dominance of the mince category, which accounts to over 50% of retail beef sales.
The rise of flexitarians (people who are reducing their meat consumption) has also affected beef sales in the UK. According to Kantar, 35% of meals prepared each week are now meat free. However, a benefit of this trend is when these consumers are choosing to eat meat, they are looking for higher quality and what they believe to be more nutritious meat. As a result in 2018 there has been increased sales of added value and steak cuts (+4%) in retail.
Food service
It has been a mixed year for the foodservice market for beef sales, the term that is given to all beef that is consumed out of the home whether it is in a top-class restaurant, a burger chain or even the work canteen. During the heatwave and the World Cup over the summer, consumers’ were choosing to barbecue and eating at home rather than eating in restaurants. This saw a decline in foodservice steak sales in the summer. This, along with foodservice meat price inflation of 2.2%, led to increased menu costs, plus overall faltering consumer confidence has meant a decline in foodservice sales, with footfall back 3.3%. Burger sales remain strong and continue to be the top protein choice for both lunch and dinner eating occasions.
Impact on farmers<
The continued move by consumers towards mince will be a concern to specialist beef producers as it the hind quarter cuts used for steaks and roasting where the better shaped carcase is rewarded
Bernadette Byrne, market specialist meat – France and Benelux, Bord Bia Paris
The good news for sheep farmers is the interesting dynamic in Belgium where retail sales of fresh lamb are taking share from frozen. Ireland is benefitting from this and, according to Global Trade Information Services (GTIS) year to date figures to August, has increased its share of imported sheepmeat from 15.4% to 17.4%. Bord Bia is working with key partners in the market to support this positive trend.
Recovery in French beef market
Finnian O’Luasa, manager, Bord Bia Paris
Following several years of decline, total French fresh and frozen beef imports for the January to July period showed an unexpected growth of 2.6% to reach 165,000t. This can probably be explained by the increase in beef consumption across the food service sector in general and particularly in the commercial catering sector both traditional and Quick Service Restaurants (QSR), where the share of imported meat remains dominant. This demand is also likely helped by the return to the high level of pre-2015 tourist numbers during the first half of 2018.
Unfortunately, neither Irish nor any other imported beef has any significant presence in the French retail sector since the protest of French farmers against imports in the summer of 2015.
Live trade main Irish interest in Spain
Cecilia Ruiz, Manager, Bord Bia Madrid
So far this year Spain has imported 87,302 live cattle from Ireland (up 76% or 37,710 head on 2017). These are mainly Friesian calves from the dairy herd, together with some Angus calves and some mainly Angus breeding cattle, although there has been some increased demand for Hereford also. The strengthening of the Spanish beef processing sector together with the increase of livestock exports from Spain to north African countries are two of the main drivers of this demand.
The increases in beef production and live exports from Spain have led to a bigger demand for Irish calves for finishing in Spanish feedlots under 12 months of age for pink veal, or to be exported live.
Despite the volatility of Spanish livestock export markets, Bord Bia expects this demand to remain strong in 2019.
With a breeding herd of 2m cows, Spain needs to import more than 580,000 cattle per year. Spain’s cattle output is around 2.4m head (633,000tn of beef), while annual live exports from Spain are around 185,000 head with the main markets being Libya, the Lebanon, Algeria, Egypt, Italy, Portugal and France.
Market cools in the Philippines
Ciarán Gallagher, manager, Bord Bia south and east Asia (Singapore)
Although the Philippines has been a growing market for Irish beef and offal exports in recent years, it is expected to show a substantial decline in 2018. This is because there is a growth in demand for lower-value proteins, in particular pigmeat and poultry with lower-value Indian buffalo meat also providing competition in the marketplace.
This is partly driven by affordability as the Philippine Peso was significantly weaker when compared with the euro in 2018 than last year. The market will, however, continue to be one of Ireland’s leading third-country export destinations, particularly for lower-value beef products. Medium- to long-term prospects are still positive and will offer opportunity as the trading environment changes. Irish exports should get a boost in 2019 with the introduction of an EU promotional campaign for beef and pigmeat.
Factory approval limiting
business in China
Conor O’Sullivan, meat market specialist, Bord Bia Shanghai
The six Irish beef factories that are approved for China are doing business for frozen beef cuts, with good demand for feather blade, short-rib, shank, short-plate and rib fingers in Chinese foodservice and online. Being limited to just six factories is a constraint and as more become approved, it is expected that there will be sufficient demand to grow Ireland’s beef exports to what is now the world’s fastest growing market for beef.
Apart from getting factories approved, doing business with China is a challenge because of the level of separation required in factories as is the limitation of approval to frozen beef from cattle under 30 months old. Irish beef exports to the end of October had reached 949t according to the CSO, with commercial trade having just started in August this year.
Pigmeat
Asian swine flu is a significant concern in the market currently. Official figures report that 600,000 pigs have been culled to date and major producers have reported lower slaughter weights due to animals being processed younger as Chinese farmers look to avoid the risk of infection by slaughtering their herds sooner than planned. As a consequence, Rabobank estimates that pigmeat production will fall in China next year. While this may signify a positive outlook for exporting countries, people could choose to eat less pork and any reduction in consumption of pork in China would seriously affect demand from countries supplying the Chinese market. Paradoxically, a less obvious outcome could see an increased consumer demand for alternative proteins such as poultry or beef if there is any rejection of pigmeat by Chinese consumers.
Ireland supplies 71%
of UK beef imports
Emmet Doyle, meat market specialist, Bord Bia London
Brexit has dominated our news bulletins throughout 2018 and the continued weakness of sterling is a drag on prices for Irish exporters trading in euros. Notwithstanding currency challenges, 2018 is looks like being another strong year for Irish beef exports to the UK with the value of exports increasing by 5% while still maintaining volume share (YTD October 2018). Irish beef accounts for 71% of UK beef imports and is the only imported beef offered in the three largest supermarkets. This and a continued strong presence in the food service sector reflects just how important the British market is for the Irish beef industry as Brexit is about to become a reality at the end of the first quarter of 2019.
Consumer trends
As well as the Brexit threat, there has been slip in consumer demand for beef. In the latest (YTD November) figures, UK retail beef volume sales have declined 2.2% according to data produced by Kantar. UK grocery consumers are continuing the move away from traditional roasts and instead are looking for quick versatile meals, reflected in the dominance of the mince category, which accounts to over 50% of retail beef sales.
The rise of flexitarians (people who are reducing their meat consumption) has also affected beef sales in the UK. According to Kantar, 35% of meals prepared each week are now meat free. However, a benefit of this trend is when these consumers are choosing to eat meat, they are looking for higher quality and what they believe to be more nutritious meat. As a result in 2018 there has been increased sales of added value and steak cuts (+4%) in retail.
Food service
It has been a mixed year for the foodservice market for beef sales, the term that is given to all beef that is consumed out of the home whether it is in a top-class restaurant, a burger chain or even the work canteen. During the heatwave and the World Cup over the summer, consumers’ were choosing to barbecue and eating at home rather than eating in restaurants. This saw a decline in foodservice steak sales in the summer. This, along with foodservice meat price inflation of 2.2%, led to increased menu costs, plus overall faltering consumer confidence has meant a decline in foodservice sales, with footfall back 3.3%. Burger sales remain strong and continue to be the top protein choice for both lunch and dinner eating occasions.
Impact on farmers<
The continued move by consumers towards mince will be a concern to specialist beef producers as it the hind quarter cuts used for steaks and roasting where the better shaped carcase is rewarded
Bernadette Byrne, market specialist meat – France and Benelux, Bord Bia Paris
The good news for sheep farmers is the interesting dynamic in Belgium where retail sales of fresh lamb are taking share from frozen. Ireland is benefitting from this and, according to Global Trade Information Services (GTIS) year to date figures to August, has increased its share of imported sheepmeat from 15.4% to 17.4%. Bord Bia is working with key partners in the market to support this positive trend.
Recovery in French beef market
Finnian O’Luasa, manager, Bord Bia Paris
Following several years of decline, total French fresh and frozen beef imports for the January to July period showed an unexpected growth of 2.6% to reach 165,000t. This can probably be explained by the increase in beef consumption across the food service sector in general and particularly in the commercial catering sector both traditional and Quick Service Restaurants (QSR), where the share of imported meat remains dominant. This demand is also likely helped by the return to the high level of pre-2015 tourist numbers during the first half of 2018.
Unfortunately, neither Irish nor any other imported beef has any significant presence in the French retail sector since the protest of French farmers against imports in the summer of 2015.
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