Irish Beef Export China Slane Abp
IRELAND is set to dramatically beef up its meat exports after three Irish beef processing plants were given approval by China.
The landmark MOO-ve means Ireland is the first EU country to get access to China's lucrative and fast-growing beef market.
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Described by Agriculture Minister Michael Creed as "a triumph for Team Ireland", it means Irish suppliers will soon feature on shop shelves and restaurant menus across China.
And it's great news for an industry which has been rocked by uncertainty amid the impending Brexit.
Here, Aoife Finneran reveals all you need to know.
What's happening?
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The Chinese administration has formally given the green light to three Irish factories - ABP in Clones in Monaghan, Slaney Meats in Wexford and Donegal Meat Processors – to export meat products to China.
Why didn't we export to China before this?
Up to the 1990s, China wasn't a significant market for Irish beef so we tended to focus on other, easier-to-reach regions.
Then the BSE crisis struck, destroying the farming industry's reputation and eventually leading to China and the US banning imports of beef from the EU.
Since then, Ireland has introduced strict protocols to ensure a top quality supply.
In recognition of this, Chinese officials have made several visits to Irish farms, processing plants and other facilities in recent years to assess our quality standards.
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The ban on EU beef was formally lifted in 2015, but it took until now for three Irish factories to get the formal go-ahead for trade.
Why is this significant?
Ireland is the first EU country to get access to the Chinese market, which means we get a great head start on our rivals.
And this is only the start. Five other plants have also applied for access to China, including ABP in Nenagh, Kepak Clonee, Liffey Meats, Dawn Meats Charleville and Kildare Chilling.
Next month, Agriculture Minister Michael Creed will lead a trade mission to China, where authorities will push for approval for the five plants.
How much is it worth to Ireland?
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We don't know yet, because China's beef market is growing rapidly.
With a population of 1.4bn, the average beef consumption per capita is just four kilos, compared with 19 kilos in Ireland.
Pork is traditionally the more popular meat, but demand for beef is on the rise.
China now consumes one quarter of the world's meat supply and is the world's second biggest beef importer.
Why does China want Irish beef?
China has an emerging middle class which is demanding higher quality food and is adopting westernised dietary habits.
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As demand for quality beef grows, the cost of producing beef to a high standard means China is looking elsewhere for quality products.
Stringent tests have proven to the Chinese that Irish beef is of a high quality, sustainable, traceable and easily recallable.
Will this make a difference to beef prices in Ireland?
It should lead to better beef prices for farmers who produce meat for export, but won't impact on the prices paid by the Irish consumer as 90pc of our beef is already exported.
The demand in China is also different to here, as they're looking for different cuts of meat.
They'll primarily be importing frozen boneless meat and "the fifth quarter" – i.e. the remaining pieces of the animal carcass that aren't used for meat production, such as the organs, hide and intestines.
How important is China for existing Irish exports?
China is already a major player in the Irish farming industry, with Irish agri-food exports totalling €974m last year.
It's also a rapidly growing market, considering that this sector accounted for just €200m in exports in 2010.
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That year, China opened up to our dairy exports, which have now reached €667m, making it our second largest dairy market.
It's also our second largest pig meat market, with exports exceeding €100m last year.
And the hope is that it will become one of the biggest importers of Irish beef.
Bear in mind its population of 1.5bn will require massive beef resources even with their moderate consumption levels.
So even if Irish plants only take a small bite out of this market, it could be worth billions.
Does this mean we're "Brexit-proof"?
No, but it's a positive development.
We currently export 250,000 tonnes of beef to the UK every year.
According to the director of Meat Industry Ireland Cormac Healy, it would take "an awful lot of access to a lot of new markets and a lot of time to replace that."
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He said: "We export 90pc of what we produce so we're always looking to maximise the number of markets.
"The importance of that has been raised in the context of Brexit and the threat to access to the UK."
He added: "This development in China is one of the steps in terms of maximising markets, but it doesn't provide all of the answers. Of course, we hope in the future that it will become a significant volume market."
Source: https://www.thesun.ie/news/2451316/how-much-is-china-lifting-its-irish-beef-ban-worth-to-ireland-will-beef-prices-in-the-shops-change-and-does-it-make-us-brexit-proof/
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