EU trade deals a 'major problem' for Irish beef sector, could wipe off £300m a year

A recent report said that the value of EU beef production itself could be reduced by €8bn, with producer price falling by over 15%
A recent report said that the value of EU beef production itself could be reduced by €8bn, with producer price falling by over 15%

Up to £300 million a year could be wiped off the value of the Irish beef sector if certain EU trade deals are agreed upon, the Irish Farmers' Union have said.

IFA National Livestock chairman Angus Woods called on the EU Commissioner for Agriculture, Phil Hogan to use findings in a report as a warning against trade deals that would be bad for EU agriculture.

A recent report said that the value of EU beef production itself could be reduced by €8bn, with producer price falling by over 15%, in future trade agreements.

"Cattle farming is undertaken by 100,000 farmers in Ireland, contributing to economic activity in every parish in the country. The Commissioner must ensure that, in future trade negotiations, the interests of the vitally important beef sector are secured."

'Important beef secures sensitive product status'

The report conducted by the Joint Research Centre (JRC) of the European Commission estimated the impact of the trade agreements on EU producer prices, production volumes and overall value of the different agriculture sectors.

Mr Woods said that the report highlights how important it is that sensitive product status is secured for the beef sector in future negotiations, with limited TRQs and the retention of tariffs on products.

He added: "Individual negotiations must take account of the cumulative impact of any previous concessions on market access that have been given in the beef sector."

Mr Woods said it is clear from the analysis that the Mercosur trade deal is the major problem for the beef sector.

He said the report is somewhat restricted in its analysis, in that it takes no account of the impact of Brexit and the UK leaving the EU or the significance of the beef sector to countries such as Ireland and France. He said the reality is that if these aspects were built into the analysis the impact on a country like Ireland would be far greater. He pointed out that a 15% reduction in producer prices would translate to a loss in value for the Irish beef sector of €350m.

The report identified that the dairy sector would gain from the reduction in tariff barriers, with the potential for growth into export markets. However, it would be important that non-tariff barriers, which may prevent real entry into new markets for the EU dairy sector, would also be removed.