Fresh from leading Irish beef into the USA for the first time since the beef export ban, Minister Coveney was able to bask in the glow of the Taoiseach’s announcement on Saturday that China had lifted the import ban on Irish beef.

Again we are the first country in the EU to achieve this. There is no denying the political achievements of the Government in opening export markets at the moment.

Political achievement is one thing, but what really matters to Irish farmers is what it will do for the price of beef in the mart and at the factory. Coming as it does after the high-profile launch of Irish steaks in the USA, there could be temptation to see heady days ahead for Irish beef. We need to be careful.

These good news stories could leave an impression that all our beef problems have been solved. They haven’t. For Irish farmers to benefit, we need to have trade developed in these markets, which is another step entirely, although one that couldn’t be taken until the political approval is in place.

For China, we now enter the phase of finalising certificates and getting factory export approval. We have had visits and there will by this stage be a familiarity with our processes and procedures and China will have seen enough to be comfortable with giving us the political go-ahead.

Next, we get into the detail and we cannot be sure just how fast this phase will move. The Chinese are noted for their slow building of relationships. However, as this has been an ongoing process, we hope that the announcement last weekend can be translated into actual trade on the ground quickly.

Whatever time it takes, we have to live with and be satisfied that we are again at the front of EU countries looking to develop this market. It will be a useful addition to our portfolio whenever it comes on board.

For the industry, this business cannot come quickly enough. Manufacturing beef stocks are building up in stores, which is a concern, as is the relatively week mainland European markets.

This is why we need alternatives such as China and the USA. Of the two, China is arguably the more important given the range of low-value parts of the carcase it could be a market for.

There has been a well-established trade with Hong Kong and a general acceptance in the trade that some of this product found its way into mainland China. Being able to deal direct will remove another layer from the chain and return better prices to our industry.

China facts:

  • By 2018, per-capita consumption of beef in China will still be in its infancy, just 5kg per annum versus 40kg for pork.
  • Chinese frozen beef imports reached 282,890t in 2013, an increase of 367% on 2012 volume of 60,524t.
  • Australia dominates imports at 47%, followed by Uruguay 30%, New Zealand 15%, Canada 4% and Argentina 4%. The US does not have market access (BSE). According to CSO figures, Irish beef exports to Hong Kong reached a value of €3.5m in 2013, a 527% increase on 2012.
  • Rabobank expects China’s imports of beef to double between 2014 and 2018.