The cost of Irish beef exports to Britain will increase by up to 11c/kg on average because of administration and inspection costs.

This average is calculated on 100 loads and is based on the assumption that travel through ports would involve minimal delay.

IFJ webinar

The figure was revealed by Michael Haverty from Anderson’s Consulting in an industry webinar, hosted by the Irish Farmers Journal in partnership with the Livestock and Meat Commission (LMC).

Where the cost escalates out of control is for what was described as an unlucky load, which is the one that is singled out for detailed checking.

This could cost up to a massive £1,100 (€1,214) per tonne or £1.10/kg (€1.21/kg) on boneless beef.

It was explained that three-quarters of this cost is accounted for by the loss in quality of product.

Fresh boneless beef destined for British retail markets from Ireland has an already limited shelf life. If this is delayed for any reason in transit, then the value of the product declines rapidly.

Documentation cost

Even if the transit process from factory to market is smooth, there is the reality of creating customs documentation and health certification which creates an administration cost.

If there is a free trade deal in place, it is expected that this will be basic and limited to no tariffs and no quotas.

Even if there had been what is described as a comprehensive deal like there is between the EU and Canada, then there would still have been administration costs for customs documentation and health certification, but there would have been less inspection frequency.

If the negotiations between the EU and UK break down and there is no deal, then there will be the additional costs of tariffs, which would amount to £2.53/kg (€2.79/kg) plus 12% of the product value.

This would make the cost of doing business in the UK prohibitive for EU exporters.

Watch Michael Haverty explain in detail below.