I think I now have a greater understanding of the processes involved. I now realise the importance of the industry for farm incomes on both sides of the Irish Sea.

Over the years, the Irish meat sector has internationalised driven by a need to meet customer demands from a variety of geographic sources, as country of origin has become more important in the eyes of the consumer. This has led to all the major meat processors investing in overseas processing facilities. This internationalisation has strengthened customer relationships and, through this, provides important market access for Irish produce and, ultimately, support for farm incomes.

British beef background

In researching the trends of the British meat market, I was amazed to learn that Britain has changed from a leading exporter to major importer. For a short period in the early 1990s, the UK was a net exporter of beef, with exports hitting an historic high in 1995. The export ban that followed the BSE crisis lasted for 10 years. While exports are now increasing, they remain well below 1995 levels. The decline in heifer numbers means that fewer are being retained for breeding, which leads to the overall downward trend in the breeding herd. The ending of production-linked subsidies and market trends discouraging bull-beef production has negatively affected returns and has prompted some producers to cease or scale back production. As a result, imports into the UK have shot up.

UK beef consumption was further eroded by the BSE crisis in 1996. It has taken 20 years for this to be reversed with domestic consumption now 12% higher than in 1990. Consumption is expected to be at least maintained at present levels, which is positive for Irish producers as we are the major supplier to the British market.

Challenges facing British beef

From working in the industry, it is evident that processing standards are high in the UK, especially high food safety and animal welfare standards, which are rigidly enforced by the veterinarians as is the case in Ireland. These regulations, while guaranteeing consumer confidence in the products, add considerable supply chain cost.

Grass-based production systems dominate in Britain, like Ireland. Consequently, the eating quality of UK beef is highly regarded. Despite producing beef in a deficit market, profitability is a key concern for many British producers like in Ireland. Even during periods of strong cattle prices, profitability – even among the very best producers – is low, as costs remain high. This is evident in the continuing decline in both the dairy and suckler breeding herds. At producer level and again similar to Ireland, the beef supply chain fails to ensure meaningful relationships with producers, with an unfair share of margins along the chain. This places the long-term viability of a sustainable domestic supply base at risk.

Ireland’s markets

Many agriculturalists rave about the upcoming Asian and Chinese markets as the key to Ireland’s success, but in my opinion Britain cannot be forgotten. The UK is without doubt the most important market for Irish beef. Volumes of Irish beef destined for the UK was an estimated 272,000 tonnes in 2015, accounting for 54% of total beef exports.

Although the majority of UK beef is domestically consumed, a recent drop in the value of the pound has led British beef becoming more attractive to EU markets. For Irish farmers, this could lead to lower returns from the UK market and increased competition in other EU markets.

As producers of quality beef, Britain is our ideal trading partner. Similar regulations exist in both our meat industries ensuring the highest quality produce and traceability. Ireland, as a net exporter of beef, can benefit from low transport costs due to the proximity of the British market and its membership in the EU. Policymakers and the food industry must take a strategic view of the British market and maximise the trading opportunities it offers to Irish agriculture, as opposed to focusing on faraway markets such as Asia and America.

I believe I’ve gained a rounded knowledge of the beef supply chain and, in particular, the importance of the British market for Irish beef given the strong similarities of production and consumer tastes.

James Meade is an agricultural science student at UCD and travels on the professional work experience programme supported by the Irish Farmers Journal and the Agricultural Science Association.

Student blog: farm visit reveals UK producer advantage