There are positive indications that the calf live export trade will repeat the strong performance of 2019 in the coming year. Live calf exports were recorded at a sizeable figure of 200,377 head last year.
This was an increase of 39,235 head on 2018 levels. It should be noted that exports in 2018 also performed favourably, increasing 59,575 head on 2017 levels as reflected in Figure 1.
Joe Burke, senior manager of meat and livestock with Bord Bia, says the market dynamics which underpinned higher exports in 2019 remain in place.
Joe Burke, Bord Bia.
The peak trading season has become more condensed in recent years, with dairy expansion and a compact calving period delivering an abundance of calves to the market in March and April.
There are now upwards of 1m dairy calves born in February, March and April, with total calf births (dairy and suckler) recorded at 1.5m over the three months in 2019. The trade for calves has started strong, as is generally the case at the start of the season when numbers are tight. It is expected that the trade in Ireland and EU markets will be broadly similar to 2019, when peak numbers come on stream allowing exporters to operate and generate a margin.
Two markets were largely responsible for the sharp lift in calf exports over the last two years – the Netherlands, which imported 83,756 calves and Spain, which imported 79,246 head, as detailed in Table 1.
Dutch market
Joe says the 73% increase in calf exports to the Netherlands in 2019 was helped by tighter supplies in the Dutch domestic market and reduced births in other EU countries that also service the Dutch market. Almost 200,000 cows are reported to have been culled in the Netherlands since 2017, due to tighter phosphate sanctions. In 2019, imports from Belgium fell by a substantial 64% or 70,000 head.
This collapse in Belgian imports occurred as a result of Bluetongue-related restrictions. These tighter restrictions also closed a supply route for Irish calves transported via Belgium and is responsible for the drop of 10,000 plus calves to the Belgian market detailed in Table 1.
Germany (which supplies 600,000 calves) remains the main provider to the major Dutch veal industry, which utilises in the region of 800,000 imported calves and 600,000 domestic calves, with Ireland the second largest supplier in 2019.
There are now fewer than 2,000 Dutch farmers in veal production
Giving some background on the industry, Joe says: “The Dutch veal sector is a highly concentrated and vertically integrated one. The leading processor, Van Drie group, accounts for more than one million head and over 75% of slaughterings annually. There are now fewer than 2,000 Dutch farmers in veal production; a third less than there were 15 years ago. The majority of veal farms operate on a contract basis in conjunction with a processor or other partner.”
This is similar to the Irish poultry industry, where veal producers are typically provided with the calf and necessary inputs, and producers receive a payment for use of their facilities and management.
The Dutch sector is built on exports, with domestic consumption small at just 1.5kg per capita and over 90% of produce exported to key markets including Italy, Germany and France
According to the European Commission, veal production is estimated to account for around 8%, or 600,000t, of all bovine meat produced in Europe. Joe says that alongside France, the Netherlands is the leading veal producer in the EU.
The Dutch sector is built on exports, with domestic consumption small at just 1.5kg per capita and over 90% of produce exported to key markets including Italy, Germany and France. There are two production systems in place – white veal and rosé veal.
The labelling of veal is governed by EU legislation, with the letter V denoting animals finished less than eight months of age and Z for animals finished between eight and 12 months. White veal is the traditional system of milk-fed calves finished under eight months, with two-thirds of Dutch calves finished in this manner.
Demand for this premium meat tends to peak around the Christmas period, which is why Irish calves meet reasonable demand between March and May.
Joe says that current Dutch veal prices are similar to January 2019 at approximately €5/kg. Higher input costs (particularly milk powder) are said to be putting pressure on margins and are heightening the importance of Irish calves being delivered in good health.
“Mortality rates in Irish calves are significantly lower than with calves from other countries. Veal producers emphasise that calves should have an arrival weight of at least 48kg. With this in mind, dairy farmers who are looking to supply calves for the export market are encouraged to make sure that they are off to a good start, consuming adequate quantities of milk or milk replacer and to consider keeping them until they are three weeks of age, rather than just two weeks old.”
Spanish market
The Spanish market was traditionally a solid outlet for Irish weanlings but in recent years, calves have dominated exports, with almost 90% of the 90,000 plus Irish cattle exported to Spain in 2019 being calves. Spain’s overall imports of calves grew to in excess of 400,000 head for the first 10 months of 2019.
Joe says: “The move to more dairy-bred calves and fewer suckler-bred weanlings was motivated by the view that Spanish feeders could produce liveweight more cheaply through efficient rearing and feeding than the buying price per kilo of the young animals. Low grain prices have also encouraged producers to specialise in this intensive system”.
The majority of animals imported are reared, finished and processed in Spain, but a big addition to the market in recent years has been the development of a significant live export trade for feeder bulls between Spain and Middle Eastern and north African markets.
According to Joe, an important feature of the Spanish market is that, in general, customers there demand a relatively strong, good-quality calf. The main animals imported are Holstein Friesian bulls which have an arrival weight of at least 52kg and preferably 55kg.
The number of calves exported to Spain in the last two years has been boosted by the development of a strong trade for Angus bull and heifer calves. This has also extended the typical calf export season and allowed Irish exporters to operate for longer, with in excess of 10,000 calves exported from June onwards.
Describing the typical finishing system, Joe says that because of the high summer temperatures, “most feedlots are situated in elevated sites, to promote ventilation. Buildings are of a simple open design with loose-bedded flooring.
“Calves are reared in a conventional manner, with milk replacer fed twice daily for seven weeks, before weaning onto a concentrate-and-straw-based diet. The bulls are finished in loose-bedded pens, with 20-25 animals in each,” he added.
“On many farms, average carcase weights of 250kg are being achieved at just 12 months of age, with average daily liveweight gains of 1.4kg/day from rearing to slaughter. Feed conversion efficiency is an important key performance indicator. The top feedlots are getting an FCE of 4.8kg of feed (dry matter) per kg of liveweight gain.”
The main concentrate mix is generally compromised of 50% maize, 30% ground barley, 8% soya bean meal, 6% palm oil and the remainder being vitamins, minerals and acid buffer. Fibre is provided through continuous access to good-quality straw.
Market round-up
Outside of the two main markets, live exports of calves to Italy have grown to a significant number in recent years and were recorded at 17,321 head in 2019. Demand has stemmed from veal producers and finishers opting to purchase calves over weanlings and is likely to be repeated in 2020.
France continues to be a constant market, with a steady amount imported year-on-year by a number of repeat customers. Poland entered the frame as a market outlet in 2018 and increased to imports of 5,069 head in 2019, with increased beef exports driving demand.
There are positive indicators for live calf exports to repeat 2019’s performance in 2020.The Netherlands and Spain are likely to remain the two key market outlets.The peak trading period ranges from February to May. The quality of calves exported from Ireland have a good reputation and this needs to remain the case to underpin continued demand.
There are positive indications that the calf live export trade will repeat the strong performance of 2019 in the coming year. Live calf exports were recorded at a sizeable figure of 200,377 head last year.
This was an increase of 39,235 head on 2018 levels. It should be noted that exports in 2018 also performed favourably, increasing 59,575 head on 2017 levels as reflected in Figure 1.
Joe Burke, senior manager of meat and livestock with Bord Bia, says the market dynamics which underpinned higher exports in 2019 remain in place.
Joe Burke, Bord Bia.
The peak trading season has become more condensed in recent years, with dairy expansion and a compact calving period delivering an abundance of calves to the market in March and April.
There are now upwards of 1m dairy calves born in February, March and April, with total calf births (dairy and suckler) recorded at 1.5m over the three months in 2019. The trade for calves has started strong, as is generally the case at the start of the season when numbers are tight. It is expected that the trade in Ireland and EU markets will be broadly similar to 2019, when peak numbers come on stream allowing exporters to operate and generate a margin.
Two markets were largely responsible for the sharp lift in calf exports over the last two years – the Netherlands, which imported 83,756 calves and Spain, which imported 79,246 head, as detailed in Table 1.
Dutch market
Joe says the 73% increase in calf exports to the Netherlands in 2019 was helped by tighter supplies in the Dutch domestic market and reduced births in other EU countries that also service the Dutch market. Almost 200,000 cows are reported to have been culled in the Netherlands since 2017, due to tighter phosphate sanctions. In 2019, imports from Belgium fell by a substantial 64% or 70,000 head.
This collapse in Belgian imports occurred as a result of Bluetongue-related restrictions. These tighter restrictions also closed a supply route for Irish calves transported via Belgium and is responsible for the drop of 10,000 plus calves to the Belgian market detailed in Table 1.
Germany (which supplies 600,000 calves) remains the main provider to the major Dutch veal industry, which utilises in the region of 800,000 imported calves and 600,000 domestic calves, with Ireland the second largest supplier in 2019.
There are now fewer than 2,000 Dutch farmers in veal production
Giving some background on the industry, Joe says: “The Dutch veal sector is a highly concentrated and vertically integrated one. The leading processor, Van Drie group, accounts for more than one million head and over 75% of slaughterings annually. There are now fewer than 2,000 Dutch farmers in veal production; a third less than there were 15 years ago. The majority of veal farms operate on a contract basis in conjunction with a processor or other partner.”
This is similar to the Irish poultry industry, where veal producers are typically provided with the calf and necessary inputs, and producers receive a payment for use of their facilities and management.
The Dutch sector is built on exports, with domestic consumption small at just 1.5kg per capita and over 90% of produce exported to key markets including Italy, Germany and France
According to the European Commission, veal production is estimated to account for around 8%, or 600,000t, of all bovine meat produced in Europe. Joe says that alongside France, the Netherlands is the leading veal producer in the EU.
The Dutch sector is built on exports, with domestic consumption small at just 1.5kg per capita and over 90% of produce exported to key markets including Italy, Germany and France. There are two production systems in place – white veal and rosé veal.
The labelling of veal is governed by EU legislation, with the letter V denoting animals finished less than eight months of age and Z for animals finished between eight and 12 months. White veal is the traditional system of milk-fed calves finished under eight months, with two-thirds of Dutch calves finished in this manner.
Demand for this premium meat tends to peak around the Christmas period, which is why Irish calves meet reasonable demand between March and May.
Joe says that current Dutch veal prices are similar to January 2019 at approximately €5/kg. Higher input costs (particularly milk powder) are said to be putting pressure on margins and are heightening the importance of Irish calves being delivered in good health.
“Mortality rates in Irish calves are significantly lower than with calves from other countries. Veal producers emphasise that calves should have an arrival weight of at least 48kg. With this in mind, dairy farmers who are looking to supply calves for the export market are encouraged to make sure that they are off to a good start, consuming adequate quantities of milk or milk replacer and to consider keeping them until they are three weeks of age, rather than just two weeks old.”
Spanish market
The Spanish market was traditionally a solid outlet for Irish weanlings but in recent years, calves have dominated exports, with almost 90% of the 90,000 plus Irish cattle exported to Spain in 2019 being calves. Spain’s overall imports of calves grew to in excess of 400,000 head for the first 10 months of 2019.
Joe says: “The move to more dairy-bred calves and fewer suckler-bred weanlings was motivated by the view that Spanish feeders could produce liveweight more cheaply through efficient rearing and feeding than the buying price per kilo of the young animals. Low grain prices have also encouraged producers to specialise in this intensive system”.
The majority of animals imported are reared, finished and processed in Spain, but a big addition to the market in recent years has been the development of a significant live export trade for feeder bulls between Spain and Middle Eastern and north African markets.
According to Joe, an important feature of the Spanish market is that, in general, customers there demand a relatively strong, good-quality calf. The main animals imported are Holstein Friesian bulls which have an arrival weight of at least 52kg and preferably 55kg.
The number of calves exported to Spain in the last two years has been boosted by the development of a strong trade for Angus bull and heifer calves. This has also extended the typical calf export season and allowed Irish exporters to operate for longer, with in excess of 10,000 calves exported from June onwards.
Describing the typical finishing system, Joe says that because of the high summer temperatures, “most feedlots are situated in elevated sites, to promote ventilation. Buildings are of a simple open design with loose-bedded flooring.
“Calves are reared in a conventional manner, with milk replacer fed twice daily for seven weeks, before weaning onto a concentrate-and-straw-based diet. The bulls are finished in loose-bedded pens, with 20-25 animals in each,” he added.
“On many farms, average carcase weights of 250kg are being achieved at just 12 months of age, with average daily liveweight gains of 1.4kg/day from rearing to slaughter. Feed conversion efficiency is an important key performance indicator. The top feedlots are getting an FCE of 4.8kg of feed (dry matter) per kg of liveweight gain.”
The main concentrate mix is generally compromised of 50% maize, 30% ground barley, 8% soya bean meal, 6% palm oil and the remainder being vitamins, minerals and acid buffer. Fibre is provided through continuous access to good-quality straw.
Market round-up
Outside of the two main markets, live exports of calves to Italy have grown to a significant number in recent years and were recorded at 17,321 head in 2019. Demand has stemmed from veal producers and finishers opting to purchase calves over weanlings and is likely to be repeated in 2020.
France continues to be a constant market, with a steady amount imported year-on-year by a number of repeat customers. Poland entered the frame as a market outlet in 2018 and increased to imports of 5,069 head in 2019, with increased beef exports driving demand.
There are positive indicators for live calf exports to repeat 2019’s performance in 2020.The Netherlands and Spain are likely to remain the two key market outlets.The peak trading period ranges from February to May. The quality of calves exported from Ireland have a good reputation and this needs to remain the case to underpin continued demand. 
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