The spread of Bluetongue disease in cattle across Europe has been one of the factors leading to a 16 per cent decline in the number of live cattle exported from Ireland last year.
Figures published by An Bord Bia, the Irish food board, in its Market Monitor report showed exports fell by 38,000 head behind last year's total of 204,000 head.
It said that issues such as rising feed costs, lower cattle prices and disease-related movement restrictions had affected trade levels in 2007.
The report noted that the main fall this year had been in calf exports, which were 22 per cent lower at 87,000 head up to the end of November last.
The number of calves shipped to Holland fell by 10,000 to 41,000 head, while numbers exported to Spain, France and Belgium, were also lower.
"This is due to the surge in dairy powder and whey prices in the year which dramatically increased input costs for the veal industry," stated the Bord Bia report.
It pointed out there was also lower veal demand in the early part of 2007 when poultry consumption started to recover following avian influenza concerns in 2006.
"Bluetongue movement restrictions in northern Europe have also affected the demand as German calves, which for the first half of the year were 40 per cent cheaper than last, became more widely available for Dutch producers," the report continued.
It said that during the first quarter of last year, Irish live calf exports were up 8 per cent on last year at 43,000 head, but this was at a time of overproduction of veal on the Continent.
"As a result, in the second quarter Irish live cattle exports fell by 44 per cent as producers on the Continent lowered production in an effort to solve the oversupply situation," it said.
It added that exports of weanlings and stores (six to 18 months) were over 20 per cent lower for the period to the end of November, at 97,000 head.
Shipments to Italy and Spain fell by 23 per cent at 45,000 and 35,000 head respectively. Higher feed costs, combined with subdued cattle prices, severely affected the profitability of Italian and Spanish markets during 2007.
However, during the year, shipments to Northern Ireland were up by 31 per cent at 34,000 head and most of these were cattle ready for slaughter.