The combined value of Irish beef and beef offal exports increased by 18% in 2022 to an estimated value of €2.65 billion.
The Bord Bia Export Performance and Prospects Report 2022/2023 which was published today (Wednesday, January 11) outlined that the value of beef exports in 2022 is estimated at €2.52 billion, which represents an increase of €384 million or 18% on 2021 figures.
The report also outlined that the value of beef offal exports increased by 17% to €134 million, leaving the combined value of beef and offal exports 18% higher than 2021 at an estimated €2.65 billion.
According to the report, cattle throughput grew by more than 7% or 120,000 head at Irish meat plants, contributing to a 9% increase in the volume exported at 512,000t.
According to Bord Bia, the higher export volumes are partly attributable to the more orderly exporting pattern in 2022 in contrast to 2021, when trade to the UK was distorted at the start of the year as the threat of a no-deal Brexit eased.
Prices for all of the main cuts were particularly strong in the first half of the year, reflecting lower volumes of beef available in the UK and across the EU and reduced imports of beef from third countries.
During the first half of 2022, the Irish beef sector benefited from continued strong demand from the UK and EU markets.
However, the report noted that this trend changed as the early summer months saw greater availability of non-EU beef on the market, in anticipation of a strong steak market.
The Russian invasion of Ukraine started to impact on food price inflation and consumer sentiment. As the year progressed, there was also increased resistance to higher prices, especially in the case of higher-priced steak cuts.
The European Commission estimates that beef consumption across the EU decreased by 1% while beef imports to the EU rose by an estimated 17%.
These factors contributed to European cattle prices reaching a historic high in April, with the average German R3 young bull price hitting €6.03/kg.
Value added
Value added beef exports increased by 60% to €250 million in 2022 according to the report with key markets for exports including the UK, France, Germany, Spain and Denmark.
According to Bord Bia, the value added meat exports are captured under Prepared Consumer Foods (PCF) subcategory and represent a vitally important outlet for traditionally lower-value cuts and trimmings.
PCF consists of products such as value-added ingredients for foodservice and manufacturing channels and products such as burgers for retail and foodservice.
Irish beef exports to the UK
Exports of Irish beef to the UK increased by 15% to reach an estimated €1.1 billion in 2022.
The UK market accounted for 43% of Irish exports in value terms, down slightly from 44% in 2021, according to the report.
Domestic beef supplies in the UK remained tight during the first half of 2022, before recovering somewhat in the second half of the year.
Imports in the first half of the year compared very favourably with year-earlier figures (which included the post-Brexit deadline downturn in imports in early 2021).
The foodservice channel enjoyed strong growth post Covid-19, with a 26% growth in beef volumes, according to the Agriculture and Horticulture Development Board (AHDB).
Retail sales were challenged by reduced consumer spending power, with volumes contracting by an estimated 8%.
The report notes this decline was particularly evident in steak sales, which were 18% lower.
This contributed to a cooling of the market in the second half of the year in the retail channel, while foodservice demand for both manufacturing beef and steaks remained more robust.
Irish beef exports to Europe
Irish beef exports to Continental European markets grew by 26% to €1.3 billion in 2022, accounting for 50% of the overall value of this trade.
Beef supplies across many markets tightened, most notably in France, Sweden and Spain by between 3% and 4%.
EU cattle prices peaked at the end of April and were up by more than €1.30/kg over the year earlier.
Demand was particularly strong for forequarter and manufacturing beef while higher-value cuts such as steaks were in lesser demand as food inflation concerns focused attention on value offers.
According to the European Beef Forecast Working Group, beef consumption declined in Germany, France, Sweden and Spain, while Italy saw a marginal increase in 2022.
International markets
Irish beef exports to international markets are estimated to have declined by 10% to €162 million. This equates to a 6.5% share of Irish beef exports in value terms.
This reflected the strength of prices available in the EU, particularly during the first half of the year.
Demand from Japan and the Philippines started the year strongly resulting in other countries’ exports increasing slightly to these markets.
Meanwhile, exports to the US were impacted by the filling of the import quota early in the year and as a result Irish exports declined considerably with this partly offset by higher trade to Canada in 2022.