One of the big defences offered when attempting to explain that the 99,000t beef quota offered to Mercosur is that it isn’t that big a deal when looked at in the overall EU beef picture.
In strict numerical terms, it is correctly said that it represents not that big a share of the EU market and that 260,000t carcase weight equivalent (CWE) of the 341,000t CWE of beef that the EU imported in 2018 came from Mercosur countries.
Breaking down a carcase
CWE is the measurement of boneless beef converted back to the amount of carcases required to produce it.
A coefficient of 1.3 is applied to give an approximate calculation.
Therefore, a 99,000t quota CWE would convert to just over 76,000t of boneless beef.
Applying a coefficient of 1.3 in converting bone in carcases to boneless beef equivalent gives a good average idea, but isn’t a price number when applied to carcases separately.
For example, in an exercise undertaken by the Irish Farmers Journal and Bord Bia at Slaney Meats, a U-3+ heifer weighing 324.6kg had 58.25kg of bone and 25.8kg of fat and waste, leaving 240.55kg of meat cuts.
On a strict 1.3 coefficient, this figure of weight cuts would have been 249kg.
No restriction in Mercosur agreement
However, what really matters in the case of the Mercosur beef quota is that there is no breakdown in proportion of cuts that can be supplied.
As Figure 1 demonstrates, when the carcase is broken down, the beef can be used in three main categories – steak, roasting or manufacturing (mince, burgers, pies, etc).
Figure 2 demonstrates that there is relatively little steak meat on a carcase, just 32kg or 10% of the carcase in our example, which means it is the most expensive and high-value part of the animal.
Oversupply
Roasting cuts are the next most valuable, making up just over 59kg of the beef on our 324.6kg carcase.
However, the lowest-value manufacturing-type beef used in mince, burgers, pies, etc, accounts for 149.26kg of this carcase and would be even higher if the knuckle cut was used in this category instead of roasting.
This often happens when the market for roast beef is weak.
When we think of a 99,000t of beef quota for Mercosur countries, it is important to understand what type of beef they can supply.
If they choose to send it all as steak meat, then it would flood the EU market and devalue it for Irish and EU producers.
If they had to use their quota for beef cuts in proportion to the share of the carcase, then half would be manufacturing beef and steak meat just 10%.
This would still be a huge addition of beef in a declining market, but it would be less damaging than if it was all in steak meat.
Read more
Brexit - not Mercosur - is the immediate threat
Mercosur: hypocrisy of Government must be challenged – IGGG
‘Opposition to Mercosur deal growing across Europe’ - IFA
One of the big defences offered when attempting to explain that the 99,000t beef quota offered to Mercosur is that it isn’t that big a deal when looked at in the overall EU beef picture.
In strict numerical terms, it is correctly said that it represents not that big a share of the EU market and that 260,000t carcase weight equivalent (CWE) of the 341,000t CWE of beef that the EU imported in 2018 came from Mercosur countries.
Breaking down a carcase
CWE is the measurement of boneless beef converted back to the amount of carcases required to produce it.
A coefficient of 1.3 is applied to give an approximate calculation.
Therefore, a 99,000t quota CWE would convert to just over 76,000t of boneless beef.
Applying a coefficient of 1.3 in converting bone in carcases to boneless beef equivalent gives a good average idea, but isn’t a price number when applied to carcases separately.
For example, in an exercise undertaken by the Irish Farmers Journal and Bord Bia at Slaney Meats, a U-3+ heifer weighing 324.6kg had 58.25kg of bone and 25.8kg of fat and waste, leaving 240.55kg of meat cuts.
On a strict 1.3 coefficient, this figure of weight cuts would have been 249kg.
No restriction in Mercosur agreement
However, what really matters in the case of the Mercosur beef quota is that there is no breakdown in proportion of cuts that can be supplied.
As Figure 1 demonstrates, when the carcase is broken down, the beef can be used in three main categories – steak, roasting or manufacturing (mince, burgers, pies, etc).
Figure 2 demonstrates that there is relatively little steak meat on a carcase, just 32kg or 10% of the carcase in our example, which means it is the most expensive and high-value part of the animal.
Oversupply
Roasting cuts are the next most valuable, making up just over 59kg of the beef on our 324.6kg carcase.
However, the lowest-value manufacturing-type beef used in mince, burgers, pies, etc, accounts for 149.26kg of this carcase and would be even higher if the knuckle cut was used in this category instead of roasting.
This often happens when the market for roast beef is weak.
When we think of a 99,000t of beef quota for Mercosur countries, it is important to understand what type of beef they can supply.
If they choose to send it all as steak meat, then it would flood the EU market and devalue it for Irish and EU producers.
If they had to use their quota for beef cuts in proportion to the share of the carcase, then half would be manufacturing beef and steak meat just 10%.
This would still be a huge addition of beef in a declining market, but it would be less damaging than if it was all in steak meat.
Read more
Brexit - not Mercosur - is the immediate threat
Mercosur: hypocrisy of Government must be challenged – IGGG
‘Opposition to Mercosur deal growing across Europe’ - IFA
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