Irish Beef Exports to Continental EU Markets up 23%

The Irish beef industry has continued to consolidate its position in the European beef market with sales to Continental EU outlets this year expected to increase to record levels, rising by 23% over the previous year.

Aidan Cotter Chief Executive of Bord Bia commenting on the growth in exports said "Irish beef is now listed with more supermarket chains in more EU markets than beef of any other national origin. Bord Bia is building on this expanding distribution platform with the second in its three year promotional campaign designed to enhance consumer preference for Irish beef."

Total exports of beef to European markets, including the UK, are forecast to rise by eight per cent to reach almost 490,000 tonnes compared with 450,000 tonnes last year. As a result, some 93 per cent of all exports are now destined for high value EU markets.

The strong performance on Continental EU markets is being driven by higher beef production in Ireland, increased demand, and a small shift in sales out of the British market following the ending of the over thirty month scheme and the release of older beef onto the market. Lower beef production on the Continent is leading to a rise in beef import requirements in markets such as France, Italy, Sweden and Spain.

Bord Bia's promotional campaign covers nine EU export markets and some 30 retail groups purchasing over 120,000 tonnes cwe, valued at €450 million. The positive reaction of participating supermarket groups to the 2005 campaign and the increasing volumes of Irish beef sold by European retailers highlights the growing awareness and positive perception of Irish beef in key markets.

The most intensive period of promotional activities this year runs from September to December across different markets and focuses on the main supermarket customers for prime Irish beef in Britain and in Continental Europe. The campaign includes in-store promotional activities as well as on-pack offers.

The challenge for this year is to continue to increase consumer awareness and preference for Irish beef while positioning it as a premium product and increasing sales during the key autumn period.

While market conditions are currently favourable, the prospect of intensified competition from South America, and any eventual WTO deal in the medium-term, will continue to pose major challenges for the Irish beef industry. Strengthening the market position of Irish beef, through building consumer preference and loyalty, is therefore a key strategic priority for the sector.

For further information contact
Rosaleen O'Shaughnessy,
Corporate Communications,
Bord Bia
Tel: 01 614 2245