Quite simply a significant increase in beef from South America will reduce cattle prices in Ireland. We will see a significant increase in the volume of cheap steaks from South America flowing into a European market where consumer demand is already under pressure. The mechanism being proposed by the EU Commission to protect domestic beef production is flawed as it ignores the opportunity for South America to cheery pick the high-valued steak market.
When high volumes of Brazilian beef last flowed into the EU, our finished cattle price was €2.50kg. A Mercosur deal is unlikely to see it return to this level. But with South American beef prices currently €1.50kg below EU prices, a Mercosur deal that increases access will reduce Irish cattle prices and your profit margin. Should the appetite that has developed at this early stage in the negotiation process to sacrifice EU beef production continue for the remainder of the negotiations, a collapse in Irish beef prices of well over €100/head could not be ruled out.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Quite simply a significant increase in beef from South America will reduce cattle prices in Ireland. We will see a significant increase in the volume of cheap steaks from South America flowing into a European market where consumer demand is already under pressure. The mechanism being proposed by the EU Commission to protect domestic beef production is flawed as it ignores the opportunity for South America to cheery pick the high-valued steak market.
When high volumes of Brazilian beef last flowed into the EU, our finished cattle price was €2.50kg. A Mercosur deal is unlikely to see it return to this level. But with South American beef prices currently €1.50kg below EU prices, a Mercosur deal that increases access will reduce Irish cattle prices and your profit margin. Should the appetite that has developed at this early stage in the negotiation process to sacrifice EU beef production continue for the remainder of the negotiations, a collapse in Irish beef prices of well over €100/head could not be ruled out.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS