Beef production at critical point PDF Print E-mail
Written by Colin Farrell   
Saturday, 26 January 2008
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It won't take that much of a shortfall in Brazilian beef imports to have a major upward impact on local beef prices. This is the view now held by the Livestock and Meat Commission (LMC) following recent analysis of global beef production patterns carried out by staff at the Lisburn based meat promotion body.  Beef slaughtering is down by some 25% year-on year in the Republic of Ireland.

 

ImageThis has led to 25 pence per kilo rise in the prices paid for finished cattle in the region. The other factor coming into play is the recent strengthening of the Euro.  Beef production is also well down across Europe. This has led to the equivalent of 15 pence per kilo rise in farmer prices, two thirds of which can be attributed to supply and demand factors. The additional five pence per kilo component is linked to currency changes. 

If Brazilian beef imports can make up the shortfall in current European supplies, then the impact on local producer prizes will be minimal. However, we know from past experience that it does not take that large a fall-off in Brazilian imports to have a major effect on the strength of the European beef market. During the early part of 2006, local beef prices did strengthen following the confirmation of foot and mouth disease in Brazil.

At the moment it is the catering sector that’s driving the beef market.  Retailers must follow suit as a matter of urgency.  Traditional Unionist MEP Jim Allister has pressed the European Commission on just how serious it is about holding Brazil to the qualifying criteria set regarding the continuation of beef imports from that country. During an exchange with the Commission in the Agriculture Committee of the European Parliament he, again, highlighted his concerns about the way Brussels is dealing with this important issue.

"Given 12 FVO negative inspections, followed by Commission inaction and fresh breathing spaces each time for Brazil, why", questioned Mr. Allister, "should we be convinced that an effective ban will indeed result?"

It has emerged that the Commission intends to identify more than 300 holdings in Brazil from which exports will be permitted if they meet the stipulated criteria. However, the testing of whether they comply will be based on EU sample inspections on as few as 20-30 holdings. Given that some of these holdings might have as many as 100,000 head of cattle, Mr. Allister expressed concern at the adequacy of this level of inspection.

"On past performance we've let Brazil make a nonsense of EU requirements, so I for one remain to be convinced that we will see rigorous holding to EU standards under the implementation of the During an exchange with the Commission in the Agriculture Committee of the European Parliament precautionary ban being introduced", said the MEP.





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Last Updated ( Friday, 29 February 2008 )