The EU Beef Crisis Explained
Irish and EU farmers are in the midst of an unprecedented beef crisis.
Find out more on why this is happening, what IFA is doing about it and what more needs to be done.
EU BEEF CRISIS
#BackBeef
IFA is protesting at the EU’s Food & Veterinary Office who is the body responsible for applying the EU’s food and feed safety standards.
This is WHY we are PROTESTING.
The EU Beef Market is in CRISIS
At the current steer base price of €3.45/kg, Irish beef prices are down 45c/kg on last year or €160/head.
EU beef prices are down 6% on last year, with steer prices down 9.7%. For w/e July 21st. the average EU R3 male price was €3.51/kg excl. vat. R3 Irish steers were €3.53/kg and UK steers were €3.70/kg.
Brexit is Causing Unprecedented Market Disruptions
The UK leaving the EU presents the most serious threat to Irish farming and our agri-food sector in the history of the State.
The UK is Ireland’s largest market for food and drink, with 40% of our food exports destined for the UK. Our proximity and shared land border mean the UK is a hugely important market for all Irish goods and services, but farming has a much higher dependence on the UK market than any other sector.
Imports of Mercosur Beef will be DEVASTATING for Irish & EU Farmers
To allow the proposed volume of beef on to the EU market would have a severe impact on Irish and European farmers, who are already struggling from the impact of Brexit and falling consumption levels.
In Ireland, due to our higher level of exports, it is expected that this impact would be proportionately higher, potentially costing an estimated €500m to €750m.
EU BEEF CRISIS
#BackBeef
The Beef Crisis Explained
Irish and EU farmers are in the midst of an unprecedented beef crisis.
Find out more on why this is happening, what IFA is doing about it and what more needs to be done.
At the current Irish steer base price of €3.45-3.50/kg, Irish beef prices are down 45c/kg on last year or €160/head.
EU beef prices are down 6% on last year, with steer prices down 9.7%.
For w/e July 21st the EU Commission reported the average EU R3 male price at €3.51/kg excl. vat.
R3 Irish steers were €3.53/kg and UK steers were €3.70/kg.
The Teagasc 2018 farm income survey shows average cattle rearing incomes at €8,813 and Cattle other incomes at €14,408.
The severe beef price cuts and the on-going cuts to direct payments, the severe beef price cuts have left beef and livestock farmers in a dire financial crisis.
For w/e July 21st. the EU Commission reported average EU R3 male price at €3.51/kg excl. vat.
R3 Irish steers were €3.53/kg and UK steers were €3.70/kg.
In 2018, the EU imported 341,053 tonnes of beef from third countries onto the EU single market.
Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) account for 268,988t or 79% of all EU imports.
Brazil is the largest importer with 140,243t, followed by Argentina at 69,996t, Uruguay at 52,462t and Paraguay at 6,287t.
Tariff rate quotas (TRQs) allow products imported within a certain quota to enter the European Union’s market at a lower or zero tariff rate than for quantities outside the quotas.
EU Commission data for 2016-2018 shows that 65% of all beef imports are in TRQ (in quota) and 35% imported paying full duties. For Brazil, 41.5% of all imports are in quota and 58.5% out of quota.
The EU granted the Mercosur countries access for an additional volume of 99,000t TRQ at 7.5% tariff and abolished a 20% tariff rate on the Hilton quota for 69,000t.
South American exporters use the preferential access through TRQ’s to target large volumes of steak cuts and cherry pick the high value EU steak market. In the EU market, steak cuts make up 10% of the volume but account for 30% of the value of the animal. As a result, large volumes of South American imports are capturing a disproportionately high level of the valuable EU steak market at the expense of EU farmers.
Currently in the EU beef market is 102% self-sufficient. At 341,000t, third country imports account for 4.4% which is undermining the EU beef market.
The EU Food and Veterinary Office (FVO), based in Co Meath, has the responsibility to assure effective control systems and to evaluate compliance with EU standards in the EU and with third countries in relation to exports to the EU market.
Over many years, the FVO has consistently highlighted the failure of Brazil to meet EU production standards across the key areas of traceability, food safety and animal health controls. In the most recent EU FVO report on Brazil, they state ‘written guarantees’ given by the Brazilian authorities were ‘not reliable’.
Brazilian cattle are not tagged and there is no traceability.
Hormones, beta agonists and other growth promoters are widely available. These products are all illegal and banned in the EU.
Brazil has endemic Foot and Mouth disease, which is a constant risk.
The EU Commission Joint Research Centre has found that Irish beef is four times more carbon efficient that Brazilian production. Greenhouse gas emissions from Brazilian beef are estimated at 80 kgs CO2-eq/kg compared to 19kgs for Irish beef.
In Brazil, the equivalent area of a football pitch of Amazon rainforests is cleared every single minute to make way for cattle ranching and additional beef exports.
Recently, Commissioner Hogan assured European producers and consumers that “no product will be allowed enter the EU market unless it complies 100% with EU standards”
It is clear from the FVO audits that Brazil and other South American countries fail to meet EU production standards. The EU cannot allow beef into the EU that would be illegal to produce here.
IFA is calling on the European Commission to act on the Irish and EU wide-beef crisis.
The key measures being sought by IFA are:
- An immediate ban on all substandard South American beef imports
- A further fund to compensate farmers who supplied cattle post-May 10th 2019 and are currently losing €4m per week on beef prices
- €1bn Brexit fund of market supports and direct aid for farmers
- An EU campaign to promote environmentally sustainable EU beef production