New strategies will be required if Ireland is to compete successfully on the European beef market. Providing a premium quality product, with the emphasis on eco-friendly farming, could result in a 10 per cent increase in value for the same volume of exports, according to Bord Bia chief executive Aidan Cotter.
It will take imagination, commitment, investment and intensive marketing to increase the level of sales within the European premium beef sector. But Ireland has a built-in advantage because of our mild climate, green image and grass-fed system.
We are simply unable to compete price-wise with imported beef from Latin America. And while pressure on the EU Commission to impose stricter quality controls on imports, or to ban them completely, may provide our farmers with a breathing space, the long-term outlook is not encouraging. That is why Irish producers, processors and marketing people must now co-operate and concentrate on penetrating the European premium market with high-value products.
Research has already been carried out by Bord Bia on how this might be achieved. Investment at all levels of the processing sector will be required, according to Mr Cotter. And the establishment of central packaging facilities in EU countries would allow for the supply of a greater number of supermarket chains. But the key ingredient will be the production of prime quality beef on a largely grass-fed or organic basis.
In the past, policies designed to maximise agricultural output under CAP support systems did little for the quality of Irish beef. But, in recent years, that has changed with the introduction of new beef breeds and bloodlines. Now we produce some of the finest meat in Europe. And, with growing competition from Latin America, the focus must remain on quality, not quantity.
There has been on-going antagonism between producers and processors because of the disparity between prices paid at the factory gate and those paid in supermarkets by consumers. Such issues are unlikely to be resolved in the short term. But, in targeting specific premium beef markets in Europe, a greater level of co-operation, advance planning and information-flow between producers and processors would be of considerable benefit in ensuring a successful outcome. The Irish beef industry is worth about €1.5 billion. Mr Cotter estimates its value could be raised by as much as €170m, allowing for some increase in grain prices, through more intensive marketing, up-dated processing and quality production. That would be a considerable achievement. And it should be a win-win situation for all concerned.