Irish beef exporters could generate additional revenues of €170 million a year by refocusing on premium European outlets and niche markets, Bord Bia chief executive Aidan Cotter said yesterday.
He told a press conference at the world's largest food fair, Anuga, in Cologne, that Ireland could no longer compete price-wise with the imported beef from Latin America and new strategies were needed for the survival of the €1.5 billion industry.
Mr Cotter said a nine-month assessment of Irish performance in the beef export markets found that increasing penetration of the expanding premium beef sector represented the biggest opportunity to secure higher returns.
"We have a very significant eco-friendly product in our beef sector and we should be capitalising on that by selling that message to our customers and highlighting the fact that our beef comes from a grass-fed system."
Organic production was one of the sectors that should be examined as there was an increasing demand for such products, he said.
"We are not talking about increased volumes of beef. I am talking about the returns from the volumes we already supply."
Mr Cotter said it was clear there would be some realignment in beef prices to reflect the recent upward shift in grain prices but a further repositioning within the current markets could achieve an additional lift in market returns for Irish beef.
"Our assessment has shown that by successfully pursuing a range of opportunities and focusing on product differentiation, the industry could generate additional export revenues amount to €170 million annually, equivalent to more than €100 per animal."
Mr Cotter said increasing the industry's portfolio of supermarket customers from 62 to 80 or 90 would be vital in securing the lift required. Adopting central packing facilities across further EU markets would also increase market opportunities.
The industry faced "a huge challenge" in attempting to increase the returns from the marketplace and it would require the co-operation of the producers, processors and marketing people.
Bord Bia had already been in discussions with the processing sector and what was being envisaged would require additional resources and investment at all levels in the chain.
Minister for State for Agriculture and Food Trevor Sargent said he fully supported the drive to secure increased returns from the beef market and he believed Ireland could do this.
"We know we cannot produce beef as cheaply as they can in Latin America but we can appeal to the emotional affection people on the Continent have for Ireland and Irish products."
Mr Sargent said he was particularly interested in the organic option for Irish producers and he would be encouraging larger farmers to go the organic route because of the increased demand for it across Europe.
"I want to see a situation where organic production is seen not just for the smaller producer but for the larger farmer and it will make economic sense for them to look at the demand," he said.
The Green Party TD said Ireland's conventional beef production was as close to organic as it could be and he suggested that we look at the Austrian and German system, where organic farmers were given contracts to service institutions such as schools and hospitals and where there were grants for organic food processing.