MEATof the MATTER
EYE ON EXPORTS
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From the highs of the US lamb breakthrough to the not-so-highs of restrictive beef quotas, it is very much a mixed bag for Irish meat exporters as they head into the second half of 2022, writes EITHNE DUNNE.
he recent news that the path is now clear for Ireland to export lamb to the US undoubtedly marks the start of a new era for producers of sheepmeat here. The US is a huge market with a steadily growing appetite for lamb – something Irish suppliers will now hopefully be able to tap into. Sheepmeat plants here can now formally apply for approval to export to the US. Minister for Agriculture, Food and the Marine Charlie McConalogue – who has described Irish sheep farmers as “world class” – said it is now up to the industry to get started on the approvals process. “I hope to see exporters take advantage of this niche opportunity as soon as possible,” he said. Meanwhile, Bord Bia CEO Tara McCarthy noted that there has simply never been a better time for Irish companies to export lamb to the US: “Bord Bia research shows that lamb consumption is growing amongst consumers in North America, particularly in the younger age categories.” This burgeoning interest will be further stimulated through a three-year beef and lamb promotion in the US. Starting this summer, Bord Bia’s ‘Working with Nature’ campaign will see numerous marketing and promotional activities take place across the US between now and 2025. According to Meat Industry Ireland (MII), the lamb import market in the US is over 160,000 tonnes in volume and currently dominated by imports from Australia and New Zealand. It welcomes the fact that Irish lamb should be on US supermarket shelves within the next few months – just as soon as exporters complete the final stages of the access requirements.
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This latest news aside, the EU27 continues to be Ireland’s most important market for sheepmeat. Demand has traditionally been biggest in France, but both volume and value to certain other EU markets have been increasing in recent years – most notably Germany, Belgium and the Nordic countries.
ENCOURAGING TRENDS Beyond the EU27, there are some encouraging trends. Bord Bia notes that Switzerland, for example, took €23.5m worth of Irish sheepmeat in 2020 – up from just €15.3m in 2019. Meanwhile, one of the State food board’s top priorities is securing direct access to China for Irish sheepmeat. This is because China continued to drive the global sheepmeat market in recent years; its imports during the first quarter of 2021 alone came to 123,460 tonnes – up from 99,378 during the same period in 2020. Last year, tighter global and EU supplies of sheepmeat, combined with a stronger demand in general, created an extremely positive market for Irish produce. This was reflected in the strong growth in value (15% up on 2020) despite a 9% drop in export volumes. Irish exporters benefitted from reduced exports of sheepmeat from the UK and falling production in the rest of the EU. There was also less New Zealand lamb available in our key export markets. Speaking in the Dáil in February, Minister McConalogue said that tighter supplies – and the redistribution of those supplies – have certainly helped to drive higher export values for Irish producers, adding that it is a trend that looks set to continue throughout this year. However, while the expected 2% reduction in EU sheepmeat production this year creates opportunities for Irish exporters – particularly in the absence of international imports – it also creates challenges. “Lower availability of product results in higher retail prices, a reduction in dedicated shelf space and ultimately a negative impact on consumption,” says Bord Bia’s latest Export Performance and Prospects InBUSINESS | SUMMER 2022
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