The sheepmeat sector recorded positive growth in 2018, with growing demand and continued diversification into value added over carcase exports reaping greater rewards.
Opening Friday’s Bord Bia meat market seminar, CEO Tara McCarthy said that Irish sheepmeat exports had come a long way in the last 10 years.
Carcase exports
Starting from a focus on carcase exports, there is now in the region of 70% of sheepmeat exports taking place in the form of primal cuts or value added products.
The increase in the product range has also been an important factor in unlocking and growing export to new market destinations.
Delivering an insight into how the market performed in 2018 and the outlook for 2019, Declan Fennell showed exports to Germany recording the greatest growth, rising 30% to reach 4,910t, while impressive growth was also recorded in Belgium, with volumes exported increasing 9% to 3,107t.
Canadian access
The Netherlands recorded a 17% increase in imports of Irish sheepmeat to reach 1,130t, while recent access to the Canadian market is providing another significant market outlet, with exports there rising 7% to 838t.
Sheepmeat exports to Denmark and Switzerland were unchanged at 1,074t and 1,029t respectively.
The traditional sheepmeat markets of France and the UK remain the highest volume markets, but exports remain under downward pressure.
Sheepmeat exports to France declined by 12% to 14,506t, while exports to the UK fell 14% to 8,901t.
Price pressure
Declan pointed to price pressure in France and increasing competitiveness from Spanish exports, with volumes increasing 59%.
“We have seen greater competition from Spain in recent years. It started with smaller volumes of Lacaune lamb being exported into the south of France, but, in 2018, spread to the north of France, with Spanish lamb competitively priced. It is a market to watch.”
The combined result ... was sheepmeat exports declining 2% to 55,800t
The other market that lost some traction in 2018 was Sweden with sheepmeat exports declining 14% to 3,579t.
The combined result of all these changes was sheepmeat exports declining 2% to 55,800t.
However, the value of exports increased significantly, rising 15% to €315m.
This growth also saw farmgate prices increasing, with hogget prices rising by 68c/kg on the back of strong market demand.
The increase in the first half of 2018 was such that annual farmgate prices increased by 25c/kg.
Read more from the meat market seminar online and in next week’s paper.
Read more
Watch: Brexit challenge in border bureaucracy
Watch: meat markets to improve later this year – but Brexit lies in between
The sheepmeat sector recorded positive growth in 2018, with growing demand and continued diversification into value added over carcase exports reaping greater rewards.
Opening Friday’s Bord Bia meat market seminar, CEO Tara McCarthy said that Irish sheepmeat exports had come a long way in the last 10 years.
Carcase exports
Starting from a focus on carcase exports, there is now in the region of 70% of sheepmeat exports taking place in the form of primal cuts or value added products.
The increase in the product range has also been an important factor in unlocking and growing export to new market destinations.
Delivering an insight into how the market performed in 2018 and the outlook for 2019, Declan Fennell showed exports to Germany recording the greatest growth, rising 30% to reach 4,910t, while impressive growth was also recorded in Belgium, with volumes exported increasing 9% to 3,107t.
Canadian access
The Netherlands recorded a 17% increase in imports of Irish sheepmeat to reach 1,130t, while recent access to the Canadian market is providing another significant market outlet, with exports there rising 7% to 838t.
Sheepmeat exports to Denmark and Switzerland were unchanged at 1,074t and 1,029t respectively.
The traditional sheepmeat markets of France and the UK remain the highest volume markets, but exports remain under downward pressure.
Sheepmeat exports to France declined by 12% to 14,506t, while exports to the UK fell 14% to 8,901t.
Price pressure
Declan pointed to price pressure in France and increasing competitiveness from Spanish exports, with volumes increasing 59%.
“We have seen greater competition from Spain in recent years. It started with smaller volumes of Lacaune lamb being exported into the south of France, but, in 2018, spread to the north of France, with Spanish lamb competitively priced. It is a market to watch.”
The combined result ... was sheepmeat exports declining 2% to 55,800t
The other market that lost some traction in 2018 was Sweden with sheepmeat exports declining 14% to 3,579t.
The combined result of all these changes was sheepmeat exports declining 2% to 55,800t.
However, the value of exports increased significantly, rising 15% to €315m.
This growth also saw farmgate prices increasing, with hogget prices rising by 68c/kg on the back of strong market demand.
The increase in the first half of 2018 was such that annual farmgate prices increased by 25c/kg.
Read more from the meat market seminar online and in next week’s paper.
Read more
Watch: Brexit challenge in border bureaucracy
Watch: meat markets to improve later this year – but Brexit lies in between
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