In a concerted effort to meet the rising challenges of the market place and the cost-of-living crisis, which will impact consumer spending, Bord Bia has ramped up its investment in the promotion of Irish beef and sheepmeat across the EU and UK.

Over the past couple of months, demand for beef experienced some downward pressure across Ireland’s European export markets, as consumers began to adjust to increases in the cost of living, including other household expenses such as electricity and fuel.

After energy, food has been the second biggest driver of inflation and retailers have acted over recent months to increasingly focus on value in order to retain market share.

Latest forecasts from the European Beef Forecasting Group indicate a -1.04% reduction in beef consumption for 2022 with -4% in Germany and -1% respectively in France and Sweden.

These trends have become more evident in the second half of the year, as consumers have begun to feel the impact of rising costs and consequently curtailed spending on higher priced proteins.

In Britain, Kantar figures the 52 weeks to September 4, show a decline in retail beef volumes of -11%, although foodservice recovered by 26% (from the previous year which had seen partial closure of the foodservice market due to Covid-19 restrictions).

However, overall beef volume sales were estimated to have fallen by -7%.

The weaker demand for higher value steak cuts has been partially offset by a strong forequarter beef trade, especially for manufacturing product. This is reflected in the Kantar retail figures, which showed a -16.5% reduction in steak sales in the year to September, while burger sales reduced by -1.1%.

An extensive programme of beef promotions is presently underway across our priority markets including the UK, Italy and Germany, as well as growth markets such as Belgium, Sweden, Central and Eastern Europe and Greece.

These promotions focus on raising awareness and growing preference for Irish beef based on superior taste and Ireland’s sustainable grass-fed production.

Bord Bia has allocated additional resources to amplify its autumn Irish beef campaigns focusing on Ireland’s main export markets for premium steak cuts, including Germany, Italy, Switzerland and Belgium.

Highlights include 110 prominent billboard advertisements across cities in the North-Rhine Westphalia region of Germany; 315 digital billboards near major retail parks in Belgium; and in Italy, in addition to 185 billboards, 127 trams and buses across Milan, Rome and Bologna will feature quality-assured Irish steak advertisements throughout October and November.

In the UK, Bord Bia is promoting Irish steaks with key retail partners, including an organic Irish beef promotion with a leading online retailer. 

Demand for lamb from customers in the domestic market and in key export markets has been hit in recent months by the growing impacts of inflation on consumer choices.

The tighter supplies of lambs for processing and lighter carcass weights has reduced product availability however, which has helped to keep a floor under the trade.

Recent insights from key markets for Irish lamb in Europe have indicated a reduction in consideration of lamb at point of purchase by retail customers, due to the high price point relative to other proteins.

Total Irish sheepmeat exports for the first eight months of 2022 were valued at €310 million, a notable 20% increase from year earlier levels. This was driven by higher average deadweight prices for the year to date, combined with the sharp increase in sheepmeat production in the first six months of the year.

Europe has remained the most important market outlet for Irish sheepmeat exports, absorbing 74% of Ireland’s exports in value terms with the UK accounting for a further 17% so far this year.

Between January and August 2022, Irish exports to the EU were €230 million, up 20% on last year and up 18% on volume to 35,199t. Exports to the UK were up 20% in value to €51 million and 12% in volume to 9,798t.

Bord Bia has continued to utilise its network of overseas offices, particularly those in the EU, to increase the awareness of and willingness to buy Irish lamb with a range of activities undertaken and planned before the end of the year.

Germany is a significant market for Irish sheepmeat (valued at €50.6 million from January to August 2022) and so far this year, activities have included promotion of Irish lamb at trade fairs; cookery demonstrations with well-known chefs; and the strategic placement of media and trade advertisements which was complemented by online and social media activity.

France remains Ireland's main export market for lamb, while Belgium has been developing steadily over the past decade. Highlight of promotional activity is a St. Patrick's Day event in Rungis, plus ongoing media campaigns.

Italy is primarily a food service market for Irish lamb and Bord Bia engages with butchers and has a range of buyer and consumer focused campaigns.

Bord Bia is also actively engaged in Denmark, Sweden and Switzerland, which are smaller markets but have growth potential.

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