In 2013 Ireland exported approximately €10m worth of beef to Russia, which is very small in the context of our €2bn of exports last year. This was broken into two categories – standard beef cuts and offal.

The value of beef cuts to Russia in 2013 was €3.2m and the volume was 1,300t. In terms of offal, 6,000t with a value of €6.6m was sent to Russia. While this year’s volumes were running slightly behind those of last year between January and May, trade sources had been expecting that the market would grow to over €12m for 2014. The main Irish beef processors as well as a number of smaller ones had been supplying the Russian market.

Following an inspection of Irish beef plants in June, the Russian Federation had banned the importation of Irish beef offal. The Irish beef offal which was sent to Russia was subsequently diverted mainly into Hong Kong and Poland.

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The offal which was sent to Russia was made up of head meats, livers and hearts. It was then used for sausages. While a home was found for this meat, it went into lower-value markets. This is the fear among those in the sector.

Not an enormous beef importer, Russia took in approximately 60,000t of beef from the EU – about 15% of its total beef exports. However, the concern for Bord Bia and the processors now is that a new market has to be found for our beef while competing with larger beef exporters into Russia such as Poland and Germany. Those countries are now expected to attempt to access the European market, thus putting pressure on Ireland.

In the short term, those in the sector remain confident that markets can be found for the beef which was destined for Russia. Indeed, there were a number of consignments which were en route to Russia which will now have to be reclassified and returned to Ireland.

In the longer term, markets such as north and west Africa will be targeted, while the Philippines only this week opened its market to Irish beef. A lower-value market than Russia, it will, however, act as another viable option.

Russia is looking to South America to pick up the slack in the loss of beef from Europe. Over 90% of beef imported into Russia came from Brazil and now officials in the Kremlin want more from Brazil. Just last week, Russia approved a further 25 Brazilian beef plants for the importation of beef and beef offal.