Irish beef exports to the end of August were worth €1.714bn, passing the previous record of €1.705bn for the first eight months of last year. This was achieved despite a 10,048t drop in the volume of beef exported this year compared with the same period in 2022.
The average value per tonne of beef exported so far in 2023 is €5,481t, compared with €5,281t between January and August last year.
The record performance of Irish beef export values so far in 2023 is underpinned by increased demand from the UK market, which includes Northern Ireland. As Figure 1 shows, 49% of Irish beef exports went to the UK in the first eight months of 2023, compared to 45% last year and is the highest percentage since the same period in 2019.
Despite the overall drop in export volumes of over 10,000t, exports to the UK increased by 7,833t.
Given the emphasis on market diversification since Brexit, the continued reliance on the UK market to this extent may be something of a surprise but there is an explanation.
Irish beef slots seamlessly into UK supply chains with the major processors operating on both sides of the Irish sea. However, the greatest attraction of Irish beef to UK buyers is its consistent lower price compared with the UK sourced equivalent.
The average UK R3 steer price in 2023 up to 7 October is the equivalent of €5.50/kg, excluding VAT, while the Irish equivalent is €5.04/kg (source: Bord Bia).
The gap has been widening over recent weeks as shown in Figure 2, to the point where at 7 October there was a 94c/kg differential between the Irish and UK price for the same animal.
If the Northern Ireland price was excluded from the UK price the gap widens further to €1.01/kg as the price paid in Britain that week was the equivalent of €5.63/kg compared with €4.62/kg in Ireland for R3 steers (excluding VAT).
EU and international markets
Irish beef volumes exported to the EU in the first eight months of this year fell to 139,955t compared with 148,300t in the same period last year due to the combination of overall volumes falling and exporters switching to the UK market.
The value of beef exported to EU markets also fell, down from just under €853m to end of August 2022 to just over €822m for the same period this year.
Irish beef is currently very competitively priced compared with prices paid in the main EU export markets and the Bord Bia export benchmark for prime beef shows that prices paid to farmers in our main export markets is €4.94/kg compared with €4.55/kg for Irish beef.
US exports collapse, China disappoints
Despite the Government’s success in opening international markets and several trade missions and promotions, Irish beef sales beyond Europe have failed to take off.
The most dramatic example is the US where despite the cattle price there being above €6/kg, Irish beef exports have continued to lose ground in 2023.
For the first eight months of 2020, Ireland exported 5,909t of beef to the US but in the same period this year, Ireland has exported less than 10% of this volume at 509t.
Difficulty
The difficulty facing Irish beef exports to the US is that they are subject to a 26.4% tariff because Brazil has used all the tariff-free quota that Ireland has access to.
This is unlikely to change for the foreseeable future and the problem is added to by increased US imports of beef from Australia where cattle price is now lower than in Ireland.
When China agreed to resume beef imports from Ireland at the start of the year, there was optimism that we could resume the steady progress that had been made there before the suspension in May 2020.
However, a combination of circumstances including the continued effects of the pandemic, a slowdown in Chinese economy, increased supplies from Brazil and a surge in Australian exports this year, have meant that it is now a much more competitive market for Irish beef and, in the eight months to the end of August, 2,693t of Irish beef went to China.
The reality is that the record value achieved for Irish beef exports so far in 2023 is driven by the fact that we offer basically the same product that is produced in the UK from cattle that cost over €1/kg less than they currently do in Britain.
Strong supplies from Australia and South America, where prices are much lower than in Ireland, mean that Asian and North American markets are well supplied and Irish beef hasn’t been able to compete.
Record value for Irish beef exports in 2023 to August.Irish cattle price €1.01/kg lower than Britain, €1.46/kg lower than US but €1.86/kg higher than Brazil.Percentage of Irish beef exported to UK highest since 2019.Irish beef exports to US less than 10% of the volume exported in 2021.
Irish beef exports to the end of August were worth €1.714bn, passing the previous record of €1.705bn for the first eight months of last year. This was achieved despite a 10,048t drop in the volume of beef exported this year compared with the same period in 2022.
The average value per tonne of beef exported so far in 2023 is €5,481t, compared with €5,281t between January and August last year.
The record performance of Irish beef export values so far in 2023 is underpinned by increased demand from the UK market, which includes Northern Ireland. As Figure 1 shows, 49% of Irish beef exports went to the UK in the first eight months of 2023, compared to 45% last year and is the highest percentage since the same period in 2019.
Despite the overall drop in export volumes of over 10,000t, exports to the UK increased by 7,833t.
Given the emphasis on market diversification since Brexit, the continued reliance on the UK market to this extent may be something of a surprise but there is an explanation.
Irish beef slots seamlessly into UK supply chains with the major processors operating on both sides of the Irish sea. However, the greatest attraction of Irish beef to UK buyers is its consistent lower price compared with the UK sourced equivalent.
The average UK R3 steer price in 2023 up to 7 October is the equivalent of €5.50/kg, excluding VAT, while the Irish equivalent is €5.04/kg (source: Bord Bia).
The gap has been widening over recent weeks as shown in Figure 2, to the point where at 7 October there was a 94c/kg differential between the Irish and UK price for the same animal.
If the Northern Ireland price was excluded from the UK price the gap widens further to €1.01/kg as the price paid in Britain that week was the equivalent of €5.63/kg compared with €4.62/kg in Ireland for R3 steers (excluding VAT).
EU and international markets
Irish beef volumes exported to the EU in the first eight months of this year fell to 139,955t compared with 148,300t in the same period last year due to the combination of overall volumes falling and exporters switching to the UK market.
The value of beef exported to EU markets also fell, down from just under €853m to end of August 2022 to just over €822m for the same period this year.
Irish beef is currently very competitively priced compared with prices paid in the main EU export markets and the Bord Bia export benchmark for prime beef shows that prices paid to farmers in our main export markets is €4.94/kg compared with €4.55/kg for Irish beef.
US exports collapse, China disappoints
Despite the Government’s success in opening international markets and several trade missions and promotions, Irish beef sales beyond Europe have failed to take off.
The most dramatic example is the US where despite the cattle price there being above €6/kg, Irish beef exports have continued to lose ground in 2023.
For the first eight months of 2020, Ireland exported 5,909t of beef to the US but in the same period this year, Ireland has exported less than 10% of this volume at 509t.
Difficulty
The difficulty facing Irish beef exports to the US is that they are subject to a 26.4% tariff because Brazil has used all the tariff-free quota that Ireland has access to.
This is unlikely to change for the foreseeable future and the problem is added to by increased US imports of beef from Australia where cattle price is now lower than in Ireland.
When China agreed to resume beef imports from Ireland at the start of the year, there was optimism that we could resume the steady progress that had been made there before the suspension in May 2020.
However, a combination of circumstances including the continued effects of the pandemic, a slowdown in Chinese economy, increased supplies from Brazil and a surge in Australian exports this year, have meant that it is now a much more competitive market for Irish beef and, in the eight months to the end of August, 2,693t of Irish beef went to China.
The reality is that the record value achieved for Irish beef exports so far in 2023 is driven by the fact that we offer basically the same product that is produced in the UK from cattle that cost over €1/kg less than they currently do in Britain.
Strong supplies from Australia and South America, where prices are much lower than in Ireland, mean that Asian and North American markets are well supplied and Irish beef hasn’t been able to compete.
Record value for Irish beef exports in 2023 to August.Irish cattle price €1.01/kg lower than Britain, €1.46/kg lower than US but €1.86/kg higher than Brazil.Percentage of Irish beef exported to UK highest since 2019.Irish beef exports to US less than 10% of the volume exported in 2021. 
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