Dáil Éireann Debate, Thursday - 3 April 2014
204. Deputy Pat Deering asked the Minister for Agriculture, Food and the Marine the efforts being made to identify additional markets for over-age bull beef, that is, beef over 24 months of age; and if he will make a statement on the matter. [15762/14]
View answerThe market situation in the cattle sector is analysed and monitored on an ongoing basis by my Department and Bord Bia. The young bull trade is challenging at present as age and weight issues continue to adversely affect demand. The number of young bulls slaughtered to date in 2014, at over 69,000 head, is 4% ahead of the same period in 2013. However, average prices for that type of animal are down significantly because there is an oversupply of young bulls that do not meet market requirements.
The principal difficulty in marketing beef from young bulls older than 16 months of age is that these animals are deemed 'out of spec' by purchasers in the UK market. The UK market, which accounted for 250,000 tonnes or 53% of Irish beef exports by volume in 2013, wants only in-spec animals – particularly steers. The bulk of Irish beef exports to the UK are purchased by retail multiples which set out specific requirements as regards the product that they are willing to purchase.
I am advised by Bord Bia that older bulls are less valuable to meat plants. When such carcases are deboned, they do not have the option of selling any of the cuts into the UK retail sector. Bulls over 24 months of age are not considered as prime cattle and are classified by the EU as mature bulls. There are, therefore, limited outlets for mature bull beef which, like that of cull cows, is primarily used for manufacturing and commands a low market value.
Feedback received by Bord Bia from customers in various Continental markets consistently indicates that they highly value prime steer beef coming from grass-based production systems. Young bull beef is seen as more of a commodity and tends to sell for a lower price. There will continue to be niches, in markets like Italy, where there is demand for a certain amount of young bull beef. However, Irish beef producers should be mindful that this is a specialised market for a restricted carcase specification and that it has become more price competitive in recent years.
It is likely that more farmers will revert to traditional steer beef finishing because Irish steers are a unique selling point for our beef industry that enables us to achieve premium prices for that product. In the domestic cattle market, the relationship between processors and producers is a highly interdependent one. Ultimately, it is the responsibility of both sides working together to manage the type and volume of cattle being brought to market so that the supply chain does not undermine the viability of beef production systems for either winter finishers or suckler farmers. Current market conditions clearly highlight the need for industry operators to improve communication on market trends and signals throughout the supply chain. An industry-led solution is essential to restoring confidence in the sector and I would encourage the various stakeholders to continue their efforts in that regard.
