Irish cattle supplies “look set to tighten further in 2024 with a reduction of 2% expected,” according to Bord Bia’s senior sector manager for meat and livestock Joe Burke.
He also outlined that “a similar situation is forecast” across Europe and noted that beef production is predicted to fall by 1%.
Burke’s comments come following the launch of the Bord Bia Export Performance and Prospects Report 2023/2024, which was published earlier this week.
In the video below, Joe Burke gives his commentary on the details of the report.
He noted that meat and livestock exports “remained very similar in 2023” to the previous year but said that lower output levels were “more than compensated for by higher average prices across most categories”.
Irish beef exports in 2023 totaled approximately €2.7 billion which was a 2% increase in value terms.
Beef exports remain Ireland’s largest meat product exported. The volumes exported in 2023 “were impacted by lower cattle supplies and also reduced average carcass weights as the year progressed”.
He added that cost inflation continued to impact on the sector in 2023.
Commenting on market destinations for Irish beef, Burke said that “the UK was the standout market for Irish beef exports in 2023 and accounted for more than 50% of the value exported” that year.
The value of Irish beef exports to the UK last year stood at approximately €1.3 billion which was a 10% increase in value terms.
He noted that prime cattle supplies were in “relatively tight supply” in Britain which helped to maintain strong domestic cattle prices.
Beef production across the European Union was estimated to have declined “by more than 3%” for 2023 with lower beef output recorded across Italy, France and Spain as a result of reduced cattle supply as well as lower cattle weights.
Burke noted that surprisingly, this did not result in a significant uplift in the market for beef and overall, the average young bull prices recorded across Europe remained very similar to the previous year.
He said the cost of living crisis impacted on shopper behaviour in 2023 which resulted in higher-value beef cuts such as steaks being in lesser demand.
Irish beef exports to international markets “were significantly lower” as a result of the stronger market for beef in the UK and Europe.
Lower-priced south American and Australian product also impacted on demand for Irish beef in international markets according to Bord Bia.
Concluding, Burke expressed optimism that some relaxation in the cost of living crisis is expected in 2024 which will have a positive impact on the demand for Irish beef.