The value of Irish offal exports declined by a total of 5% in 2020 when compared to 2019, dropping to €192 million, according to Bord Bia’s annual report for 2020.
In the report’s sector reviews for meat and livestock, it was noted that Irish beef exports in 2020 faced “an unprecedented market challenge arising from the covid-19 crisis”.
The resulting upheavals across all markets “significantly changed beef demand in terms of carcass balance and beef specification”.
The European food service channel – which according to Bord Bia is a particularly important outlet for steaks, accounting for up to 60% of steak total exports – “was estimated to have contracted by 35%”, the report outlined.
Despite this, retail demand throughout Europe saw growth of over 10% in retail sales in 2020.
Finished cattle supplies
During 2020, finished cattle supplies at export meat plants increased by approximately 46,800 head, or 2.7%, to leave the annual total throughput at 1.78 million head, according to the report.
This increase in production was driven by strong retail sales of Irish beef throughout the year due to covid-19 restrictions on dining out.
Strong retail demand in the second half of 2020, coupled with a partial recovery in the foodservice sector, led to cattle throughput improving in the second half of 2020.
Here’s a breakdown of throughput in each category for 2020:
- Throughput of young bulls declined by 32%, with 66,900 fewer animals being sent for processing;
- Overall, the number of steers processed in 2020 increased by 11.5%, or 72,000 head;
- Cow supplies increased by 22,300, or 6.45%;
- Heifer throughput increased by over 4%, with an extra 20,900 animals processed in Irish export meat plants.
According to the report, the average carcass weight of beef animals processed in 2020 increased by 2kg.
Due to the market challenges resulting from the covid-19 crisis, primary beef exports declined by 1.4% to 481,000t (excluding offal), which had an overall value of €1.9 billion, representing a decrease of 1% on the year previous.
However, the report outlined that the total value of beef exports, including offal, reached almost €2.1 billion, a decline of 1% on 2019 levels.
Producer prices increased slightly in 2020, with the average price for R3 steers rising to €3.63/kg, an increase of 3c/kg compared to the average price in 2019.
The average price recorded for the R3 young bulls throughout Europe during 2020 was €3.54/kg whereas the average price paid for R3 steers in the UK during the year was €4.01/kg.