Joe Burke, Meat Division, Bord Bia – Irish Food Board

Live cattle exports from Ireland totalled just over 160,000 head last year. This represented a 25% decline on 2011 shipments, when almost 215,000 cattle were exported. Even more dramatically, last year’s export levels represent a decline of more than 50% when compared 2010, when the highest live exports in recent years were recorded. In that year, some 340,000 head were exported live, almost half of which were calves.

Exports of calves experienced the most dramatic decline in 2012, falling by 57% to just over 38,000 head. Shipments of weanlings and store cattle were collectively 14% lower than 2011. Meanwhile, exports of finished cattle increased slightly in spite of tight supplies at Irish meat plants.

The main reason behind the decline in calf shipments was the strong increase in Irish calf prices which left these animals less price-competitive than in previous years. Holstein-Friesian bull calves tended to average close to €190 per head last spring, up from €130 the previous year. There were a number of contributing factors, including dairy farms rearing surplus calves to avoid going over-quota. There was also a tight supply of young store cattle, which encouraged some producers to buy calves instead.

Principle destinations for Irish calves include the Netherlands and Belgium, although in 2012 these recorded declines of 56% and 68%, respectively, in the volumes exported. However, in most years demand from these markets ‘sets the base’ for calf prices here, with veal producers looking to source healthy young calves of between 2 and 5 weeks of age.
The Dutch veal sector is highly integrated, with production closely coordinated by the processors in order to meet specifications and to avoid a surplus of supply. The industry is highly export-focused, with up to 90% of their production destined for markets such as Italy, Germany and France.

Overall, the Netherlands import up to 900,000 calves every year for veal production. We are likely to see some recovery in calf exports to that market, particularly if prices remain below last year’s levels.