Beef is among the top traded commodities in the world with almost 10m tonnes expected to be traded this year according to FAS/USDA. This represents a doubling in global export trade in beef over the past three decades and is driven by a combination of increased production and demand, in particular from the developing world where western diets become more popular as wealth increases. Increased production has also factored with Brazil for example increasing its output by over 50% this century to almost 10m tonnes from 6.5m in the year 2000.

Main Exporters

Ireland is the sixth largest beef exporter in the world, exporting around 0.5m tonnes annually, and lies between New Zealand in fifth place on 0.6m tonnes exported and Paraguay in seventh on 0.4m tonnes.

The top four countries for beef exports are India - 2m tonnes, Australia - 1.8m, Brazil - 1.6m and the USA - 1m. Of the top global meat trading countries, the USA, India, Brazil and India have also a huge domestic market while Australia, New Zealand and particularly Ireland are the largest net exporters with Ireland exporting 90% of its total production.

Importers

The USA also features in the top importing countries table. The reason for this is the demand for ground burger type or manufacturing beef completely outstrips supply in the US. Therefore they are as large an exporter of beef as they are importer with huge quantities of steak meat being exported and equally huge quantities of manufacturing beef being imported in return. In volume terms this amounts to about 1m tonnes annually, the same as Russia. Russia however is a reducing imports both for economic reasons with the fall in oil prices and a drive for greater self-sufficiency since the EU imposed its economic sanctions and export ban.

Japan comes next at third place in the top importers league on 0.75m tonnes, then Hong Kong and China at 575000 and 550000 tonnes respectively. The EU is an importer of 380000 tonnes, primarily of high value steak cuts from South America, the US, Australia and New Zealand plus some African countries. South Korea is also a major importer on 360000 tonnes.

Trade patterns

In terms of who does what where, Japan, Hong Kong and South Korea are the top export destinations for US sales, the US is the big destination for huge quantities of Australian and New Zealand manufacturing beef. Russia switched to South America after the EU embargo while China was Brazil’s main export destination in November after getting eight factories approved in the middle of 2015. Several more approvals are expected to follow early in 2015. India sells its surplus beef in neighbouring Asian countries and while Ireland gets grouped along with rest of the EU in global statistics we know that over half our sales are to the UK, and most of the rest to our near European neighbours of France, Italy, Sweden, the Netherlands, Germany and Spain with around four percent exported outside the EU.

Impact on Irish farmers

As Irish farmers know so well, being a country that is dependent on export sales leaves farm gate price seriously exposed to the ups and downs of global commodity markets. Ireland too has had the added burden of having limited access to international markets so we are unable to take advantage of some of the best opportunities when they arise. The Department are working hard to address this with notable achievements in recent but it is only when full access across the globe is achieved can we avail of the best opportunities. ?