Quite simply a significant increase in beef from South America will reduce cattle prices in Ireland. We will see a significant increase in the volume of cheap steaks from South America flowing into a European market where consumer demand is already under pressure. The mechanism being proposed by the EU Commission to protect domestic beef production is flawed as it ignores the opportunity for South America to cheery pick the high-valued steak market.

When high volumes of Brazilian beef last flowed into the EU, our finished cattle price was €2.50kg. A Mercosur deal is unlikely to see it return to this level. But with South American beef prices currently €1.50kg below EU prices, a Mercosur deal that increases access will reduce Irish cattle prices and your profit margin. Should the appetite that has developed at this early stage in the negotiation process to sacrifice EU beef production continue for the remainder of the negotiations, a collapse in Irish beef prices of well over €100/head could not be ruled out.

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Mercosur to get major access to EU beef market