The agreement announced by European Commission president Ursula von der Leyen last Friday will create a 99,000t carcase weight equivalent beef quota for Mercosur member countries at a tariff rate of 7.5%.

The Mercosur countries of Argentina, Brazil, Paraguay, and Uruguay already have a preferential tariff of 20% on a 66,000t Hilton quota and in addition to the new quota with a 7.5% tariff, the tariff on the Hilton quota would be reduced from 20% to 0%.

While the new quota stipulates that 55% of the beef can be supplied fresh, the other 45% will be for frozen beef.

Fresh beef commands a premium over frozen beef in the market.

There is no restriction in the deal on what type of beef cuts that can be supplied or requirement for carcase balance.

The only part of the beef carcase which commands a premium in the EU and UK markets are the highest-value steak meat cuts.

These cuts are most likely to be prioritised by South American exporters in exports to the EU.

If the 99,000t quota was filled with exclusively steak meat, it would require up to 3.5m cattle, twice the Irish annual kill, to produce it.