Joe Burke, Senior Manager Meat & Livestock, Bord Bia – The Irish Food Board
Bord Bia recently held its annual seminar with the livestock exporters, the Department of Agriculture, Food and the Marine and other key stakeholders in this sector.
For 2019, live cattle exports totalled almost 300,000 head. This represented growth of 21% in comparison with the previous year, and the highest number of cattle shipped since 2010. The Dutch, Northern Irish and Italian markets recorded reductions of 73%, 37% and 25%, respectively. Spain remained Ireland’s largest livestock market, at over 90,000 head. Libya was the most important international market, with over 11,000 bulls exported, mostly during the final quarter of the year.
With the calving season soon approaching, the export trade is focusing keenly on markets for Irish calves. Calves accounted for over 200,000 head, or two thirds of total exports in 2019. As a result of the abolition of EU milk quotas in 2015, the Irish dairy herd has grown by more than 300,000 head over the past five years to approximately 1.5 million cows.
Irish calf exports are highly seasonal, in-line with the increasingly compact calving pattern of the Irish dairy herd. In fact, between mid-March and early May, Ireland’s export capacity can at times represent a limiting factor within this trade. It is likely however that one of the lairages where the Irish calves are fed and rested near the French port of Cherbourg will add additional spaces over the coming weeks, which would provide further opportunity for Irish exports. The key export destinations for calves this spring are again expected to focus on the Dutch and Spanish markets.
The Netherlands
The Dutch market recorded a 73% increase in exports for Irish calves in 2019, reaching 84,000 animals. Ireland was the second largest calf exporter to the Netherlands, after Germany (600,000 head). Belgium was previously a major supplier, but in 2019 their exports fell by 64% to just 40,000 calves, as a result of restrictions related to Bluetongue disease. In addition to imports of more than 800,000 head, the Dutch veal industry utilises approximately 600,000 domestic dairy calves.
The Dutch veal sector is a highly integrated one. The leading processor, Van Drie, accounts for more than one million head, over 75% of slaughterings annually. The majority of veal farms operate on a contract basis. Producers are provided with the calf and feed inputs, and receive a management fee in line with agreed performance targets.
Consumption of veal in the Dutch market is small, at just 1.5kg/capita, and over 90% of production is exported. Key markets include Italy, Germany and France. In the Netherlands, approximately two thirds of calves are reared for traditional white veal (mainly fed on milk-based diet) and one third for rosé veal (mostly grain-fed, lower-priced). Current market prices for white veal are similar to where they were in January 2019, at approximately €5.00kg of carcase weight. However, higher inputs costs, particularly milk powder ingredients, are putting pressure on margins.
Although the Dutch market tends to import slightly lighter Friesian bull calves than the Spanish, veal producers emphasise that calves should have an arrival weight of at least 48kg. With this in mind, dairy farmers who are looking to supply calves for the export market are encouraged to make sure that they are off to a good start and consuming adequate quantities of milk or milk replacer.
The Spanish market
Bord Bia remains optimistic that Spain will again represent a major market for calf exports in 2020. In 2019, it took more than 90,000 head of Irish cattle: of which over 80,000 were calves. Spain’s overall imports of calves continue to grow (to over 400,000 for the first 10 months of 2019). In recent years, Spanish feeders have opted to purchase more dairy-bred calves and fewer suckler-bred weanlings. Male cattle are fed intensively and generally finished at between 12 and 14 months. Low grain prices in recent year have encouraged producers in this system.
An important feature of the Spanish market is that, in general, customers there demand a relatively strong, good quality Holstein-Friesian bull calf, with an arrival weight of at least 52kg, but preferably 55kg. In recent years, there has also been a growing demand in Spain for Angus-cross calves. The resulting beef is marketed as a premium offering at retail and foodservice level.