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The SIAL trade show in Paris, which gathers food processors and manufacturers from across the world, provides the ideal opportunity to hear the views of some of our major competitors and buyers. This is especially relevant given that so much has changed with Brexit, TTIP and a further round of talks between the EU and Mercosur scheduled. More than 7,000 exhibitors and 160,000 visitors attended the show this year.
Watch interviews with exhibitors in our video below:
Manuel Lussich
Uruguayan Rural
(Farmers) Association
On Uruguayan beef: “We operate open-range production systems, mostly grass-fed. We have three million people and 12m cows – exports are huge for us. China is our number one market at present.’’
On exports to Europe: “Most of our current European exports go to Germany and the UK.’’
On Brexit: “The first impressions here at SIAL are that UK customers are being very cautious. At meetings between Mercosur and UK negotiators in Brussels last week, there was some short-term business done, but they are hesitant to look long term until sterling settles.’’
Antonio Camardelli
President of Brazilian Beef
Exporters Association
On Brazilian beef systems: “Brazilian beef systems are grass-based. Cattle go to a feedlot for the final two months for finishing. The amount of cattle slaughtered older than 36 months is declining.’’
On getting beef into the UK: “It would be mostly primary product that could go to the UK (roasting cuts, mince), not final cuts (high-value).’’
On new markets: ‘‘We have just got into the US market and have almost gained access to Canada, South Korea and Japan. That these high-end markets are taking our beef shows the high health status and sustainability of our product.”
Leo Chiabera
Exporter with JBS Argentina
On the mood in the Argentinian beef industry: ‘‘Breeders are retaining cows this year to increase their herds – it’s difficult as an exporter. The relationship between farmers and processors is difficult at the moment. Producers have no loyalty – they will go to different plants for 1c/kg extra.’’
On Argentinian exports and the potential of the UK: ‘‘At the moment, we export 6% of the beef we produce. The main destinations for this include China, Chile, Israel and some European countries such as Germany. We’re hoping to have access to the US reapproved in the next year. We are waiting to see what happens in the UK with Brexit. No deals have been done yet but we have offices there and are keeping an eye on the situation.’’
Jim McLaren
Chair of Quality Meats Scotland
On Brexit: “It’s important to remember that Brexit hasn’t happened yet; relationships have not changed. What’s happening now with the market is based on sentiments. It’s giving us an advantage at the moment because Irish product coming into the UK is more expensive. The key is where it ends up and what trade deals are done.”
On Scottish beef and lamb: “We’re not a volume producer. In Scotland, the focus is on high-quality, relatively high value products. What’s important to us is to maintain, and indeed increase our exposure to high-value markets in Europe. Our Scotch beef protected geographical indication (PGI) quality mark helps with this. We need to differentiate our product from potentially cheaper meat coming into the UK.’’
On the Scottish producer/processor relationship: “I would say that there is a healthy tension there. Specification changes recently have caught some farmers out – demand for 320kg to 350kg carcases is strong, but farmers want to grow cattle heavier in the belief that weight pays.’’
Knud Agaard-Svendsen Trade specialist at Meta Foods, US
On the mood of US beef farmers: “The relationship between farmers and processors is better than it was, but some tension remains. Last year, the cattle herd was at a record low, demand was high and price was good. Now the herd is growing, more cattle are coming on stream and supply is driving down the price. Feedlots are struggling now. Cattle are being sold on grids (like our EUROP) more and more, so producers are now trying to meet specifications.”
The threat of Mercosur: “They’re producing a different type of beef to us. Their grass-fed product would be regarded as lower quality relative to our corn-fed beef. America also needs lots of lean beef coming in to mix with our fat trimmings to make hamburgers. We are the largest importer of beef in the world at present – I don’t think they’re a big threat.”
The SIAL trade show in Paris, which gathers food processors and manufacturers from across the world, provides the ideal opportunity to hear the views of some of our major competitors and buyers. This is especially relevant given that so much has changed with Brexit, TTIP and a further round of talks between the EU and Mercosur scheduled. More than 7,000 exhibitors and 160,000 visitors attended the show this year.
Watch interviews with exhibitors in our video below:
Manuel Lussich
Uruguayan Rural
(Farmers) Association
On Uruguayan beef: “We operate open-range production systems, mostly grass-fed. We have three million people and 12m cows – exports are huge for us. China is our number one market at present.’’
On exports to Europe: “Most of our current European exports go to Germany and the UK.’’
On Brexit: “The first impressions here at SIAL are that UK customers are being very cautious. At meetings between Mercosur and UK negotiators in Brussels last week, there was some short-term business done, but they are hesitant to look long term until sterling settles.’’
Antonio Camardelli
President of Brazilian Beef
Exporters Association
On Brazilian beef systems: “Brazilian beef systems are grass-based. Cattle go to a feedlot for the final two months for finishing. The amount of cattle slaughtered older than 36 months is declining.’’
On getting beef into the UK: “It would be mostly primary product that could go to the UK (roasting cuts, mince), not final cuts (high-value).’’
On new markets: ‘‘We have just got into the US market and have almost gained access to Canada, South Korea and Japan. That these high-end markets are taking our beef shows the high health status and sustainability of our product.”
Leo Chiabera
Exporter with JBS Argentina
On the mood in the Argentinian beef industry: ‘‘Breeders are retaining cows this year to increase their herds – it’s difficult as an exporter. The relationship between farmers and processors is difficult at the moment. Producers have no loyalty – they will go to different plants for 1c/kg extra.’’
On Argentinian exports and the potential of the UK: ‘‘At the moment, we export 6% of the beef we produce. The main destinations for this include China, Chile, Israel and some European countries such as Germany. We’re hoping to have access to the US reapproved in the next year. We are waiting to see what happens in the UK with Brexit. No deals have been done yet but we have offices there and are keeping an eye on the situation.’’
Jim McLaren
Chair of Quality Meats Scotland
On Brexit: “It’s important to remember that Brexit hasn’t happened yet; relationships have not changed. What’s happening now with the market is based on sentiments. It’s giving us an advantage at the moment because Irish product coming into the UK is more expensive. The key is where it ends up and what trade deals are done.”
On Scottish beef and lamb: “We’re not a volume producer. In Scotland, the focus is on high-quality, relatively high value products. What’s important to us is to maintain, and indeed increase our exposure to high-value markets in Europe. Our Scotch beef protected geographical indication (PGI) quality mark helps with this. We need to differentiate our product from potentially cheaper meat coming into the UK.’’
On the Scottish producer/processor relationship: “I would say that there is a healthy tension there. Specification changes recently have caught some farmers out – demand for 320kg to 350kg carcases is strong, but farmers want to grow cattle heavier in the belief that weight pays.’’
Knud Agaard-Svendsen Trade specialist at Meta Foods, US
On the mood of US beef farmers: “The relationship between farmers and processors is better than it was, but some tension remains. Last year, the cattle herd was at a record low, demand was high and price was good. Now the herd is growing, more cattle are coming on stream and supply is driving down the price. Feedlots are struggling now. Cattle are being sold on grids (like our EUROP) more and more, so producers are now trying to meet specifications.”
The threat of Mercosur: “They’re producing a different type of beef to us. Their grass-fed product would be regarded as lower quality relative to our corn-fed beef. America also needs lots of lean beef coming in to mix with our fat trimmings to make hamburgers. We are the largest importer of beef in the world at present – I don’t think they’re a big threat.”
Adam Woods has the latest on this week’s beef trade, including the latest factory quotes for finished cattle.
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