Beef exports defy Brexit fears

Despite the uncertainties of Brexit, the volume of UK fresh and frozen beef exports rose by 18 per cent during the January to August period this year – while sheepmeat exports were up by 20 per cent over the same period.

Stuart Ashworth, director of economic services with Quality Meat Scotland (QMS), said that amid the confusion accompanying the UK’S proposed exit from the EU, the first twothirds of 2019 had been a positive period for the UK’S red meat exporters.

However, he tempered the good news by revealing that the year-on-year growth had been achieved by trading at a lower price – as the value of beef exports had only grown 3 per cent while sheepmeat exports only grew 8 per cent by value. “The European market still dominates with 82 per cent of beef and 96 per cent of sheepmeat going to Europe,” said Ashworth.

But while the average price per tonne of beef sold to Europe was higher than the value sold outside Europe, for sheepmeat the price per tonne was little different between Europe and the rest of the World.

On the other side of the coin, the volume of beef imported between January and August 2019 was 11 per cent less than the same period in 2018 while sheepmeat imports fell 18 per cent.

“While the average price per tonne of sheep meat imported grew 1 per cent, the beef that was imported had an average price 3 per cent lower than in 2018,” said Ashworth. “However, the average price of fresh beef supplied by Ireland so far this year has been 5 per cent lower than last year.” And while Europe accounted for most beef exports, it also accounted for 96 per cent of beef imports – with Ireland alone accounting for 80 per cent of the total figure.

Turning to sheepmeat imports he said that they had fallen by 18 per cent so far this year, with a drop in supplies from New Zealand being partially offset by increased supplies from Ireland.

However Ashworth said that despite the higher exports and lower imports, meaning there was less beef and lamb on the home market, there had been little sign of any expected improvement in returns – which he said pointed to a “well supplied and highly price sensitive” domestic market.