Re-opening of Chinese market presents opportunity for Irish beef

IFA President Tim Cullinan has welcomed the announcement by the Minister for Agriculture Charlie McConalogue that the Chinese market is re-opening for Irish beef.

He said the re-opening of the Chinese market, after a lot of hard work, presents the beef sector with a huge opportunity in what was a market showing strong growth potential before the suspension of access in May 2020.

The IFA President said the full value of the Chinese beef market must now be developed. 

“It is important that eligibility is secured for all Irish beef products and the market opportunity is not restrictive, the protocol must now be worked on to allow beef products from all Irish livestock,” he said.

IFA Livestock Chairman Brendan Golden said the long-awaited re-opening of the Chinese market to Irish beef is significant and we must see the benefits of this renewed access directly in stronger beef prices for cattle finishers.

He said the production costs on beef farms are well documented and beef prices must now push on to offset these costs.

ICMSA President Pat McCormack[s reaction

The President of ICMSA, Pat McCormack, said that much credit was due to Minister McConalogue and his officials for their perseverance and application in the face of what the ICMSA President said was always a disappointing decision on the part of the Chinese authorities to close their market to our exports.

Mr. McCormack said that development and growth of food exports to China must be a priority and that we could be supremely confident that the standards of our products would ensure a receptive and engaged market.  The only question, according to Mr McCormack, was whether this huge opportunity would translate back into a return for the people actually producing the beef: the farmers.

“We have been here far too often, where a new market is announced or a re-opening of temporarily closed market is confirmed, without any underlying effect or message for the people who will be doing the work and producing the food that will be exported to that market.   If the reopening of the Chinese market to Irish beef doesn’t mean an increase in cents per kg for the Irish farmers producing the Irish beef, then it’s actually meaningless; it just becomes an empty marketing exercise”, said the ICMSA President.

“While we sincerely congratulate Minister McConalogue , Minister of State Heydon and Ambassador Derwin on their work and achievements, the job is only half-done.   Unless the farmers get a better price for their beef to a degree that makes it feasible to produce that beef, this whole project will remain just a positive PR spin as opposed to meaningful development. Ensuring that that happens is no less the business of Government then were the negotiations with the Chinese officials that were successfully carried out”, concluded Mr McCormack.

ICSA Reaction

ICSA beef chair Edmund Graham has said the resumption of beef exports to China is welcome but stressed that farmers must see a dividend as a result. “There was much optimism about the initial opening of the Chinese market in 2018 and there will be optimism again now, but it is no use to us if it does not result in a price rise.”

Continuing Mr Graham said, “Beef farmers are enduring a long, hard, and expensive winter and the current price of beef is simply nowhere near good enough to cover our increased cost of production. Beef price needs to go to a base price of a least €6.00/kg in the short term to cover the costs of this winter.”

“There can be no doubt that the reopening of this market should allow for better prices because meat factories will have more options. They will therefore be in a stronger position to negotiate with EU supermarkets, and this opportunity must be used to drive a better price for farmers.”