Sterling’s collapse triggers huge rise in meat exports

The collapse in the value of sterling on the international market has produced a record breaking tonnage of exports of red meat from the UK with sales of over £500 million being recorded in the first six months of 2017.

That is a rise of 18 per cent on the previous year and it is backed up with sales of fifth quarter meat or offal rising by 21 per cent.

While European markets have been the main destination for the beef, lamb and pork from the UK, shipments to Asia have also risen, according to the figures supplied by the UK government.

The highly touted Chinese market for pork bought more than half the 41,000 tonnes of pigmeat traded; a 6 per cent rise in the first half of this year compared to 2016.

Lamb produced in this country has also been in demand with exports to both European and noneu countries up by 18 per cent on the first six months of last year. The value of sheep meat exported in that period has been put at £178 million.

Beef exports to countries outside of Europe

0 Beef exports outside Europe rose a massive 45 per cent also played their part in the record breaking figures with a massive 45 per cent year-on-year rise with almost 8,000 tonnes going to these markets.

Earlier this month, Stuart Ashworth, the economics guru at Quality Meat Scotland, described beef exports outwith Europe as being “useful” in helping the domestic trade, although he added the EU remained the “most important export market.”

“While the current market is being helped by lower domestic beef production it is also being supported by sterling’s weakness,” he said. “This has encouraged greater export activity and reduced the competitiveness of imported product.

“Across Europe, producer prices are currently around 3-4 per cent higher than this time last year, while after adjusting for exchange rate movement GB producer price is similarly up around 3 per cent.”

Ashworth also highlighted one consequence of the tight home market for beef when he pointed out that, between February and the end of May Ireland had sent more beef to the UK than last year.

“Nevertheless, overall beef imports have declined and with exports increasing and domestic production falling there has been a basic strength in the market which has supported firm prices for most of this year and is likely to continue to do so in the short term,” he added.