Opening of US market for Irish beef given 'guarded welcome'

News that Ireland has secured beef access to the US market has been given a guarded welcome by the Irish Cattle and Sheep Farmers' Association.

Beef from the EU has been banned from the US since it imposed its ban for BSE reasons over fifteen years ago and this ban was only formally lifted in March 2014.

Ireland had been consistently calling for the US to lift its ban and Minister Coveney had raised the matter with Secretary of State Vilsack, citing the high demand for Irish beef around the world as proof of its quality and reliability.

Minister Coveney said “I am delighted with this confirmation that the US market is now open to Irish beef. This is the culmination of two years of intensive work between my Department and our US counterparts to prove our credentials as a supplier of highest quality premium beef. I’d like to take this opportunity to thank my US counterpart Secretary of State Tom Vilsack with whom I’ve worked very closely on this issue to bring it to this stage”.

But ICSA President Patrick Kent said farmers will remain sceptical given the 'ruthless downturn' of prices by the meat industry over the past twelve months.

"They are still waiting to see concrete benefits from previous announcements of new markets."

"Ireland should be ambitious in its plans to attract a significant share of the US market, given our reputation for producing premium beef through predominantly grass-fed systems, and we also have the added advantage of a receptive market in the 40 million Americans who claim Irish heritage."

"This new market opportunity must bring an improvement in prices if it is to be taken seriously," he reiterated. "Ireland's grass-fed systems should be at the heart of the marketing of our beef in the US, and maintaining the viability of these systems must now be a key priority for the Minister. The fact that US beef farmers are getting €4.53/kg for R3 equivalent steers suggests that we have the potential to export significant quantities of Irish beef at a higher price than that which obtains at present."

"There still remains a concern as to the negative impacts from a potential quid pro quo under the TTIP negotiations", cautioned Mr. Kent.

Coveney said: “This announcement by the US is a huge endorsement of Irish beef and our production and regulatory systems. It complements the other market access outlets we have secured in the last two years all of which are a key element of our Food Harvest 2020 strategy to expand the overseas opportunity for Irish beef. It’s clear that diversifying our international beef markets as an exporting country is key to the long-term sustainability of our beef sector”.

This US decision clears the way for the Irish authorities to approve individual beef plants here to export to the US, approval for which will be based on agreed criteria with their US counterparts. The Department has been working with interested Irish plants to assess their readiness and suitability for export for some time and this work will intensify now in order that the trade can formally commence as soon as possible.

Concluding, the Minister said “this US market is a huge prize given the size of the market and the demand we know exists there for premium grass-fed beef. We now have first-mover advantage as a result of being the first EU member state to gain entry. There is also the large Irish-American community which will be a key target of our promotional efforts for Irish beef now. My Department and Bord Bia have been planning for this announcement for some time now and will announce a number of initiatives in the coming weeks including a dedicated website aimed at American consumers and buyers highlighting the quality of Irish beef. This announcement marks a fantastic start to 2015 for the Irish beef sector”.

The European Commission said it welcomed the announcement.

"This re-opening of the market is a welcome first step to abolish the disproportionate and unjustified US ban that followed the BSE crisis of the 1990's, and to re-establish normal trading conditions.

"This announcement sends an important and positive signal to the other EU Member States who have requested the US to re-establish access to the US beef market. It is now desirable that the US acts expeditiously to extend the approval to the rest of the European Union and to fully bring their import conditions in line with international standards.

"We also welcome that this move, which forms part of a growing trend, recognises the robust, comprehensive and successful measures put in place by the EU to eradicate BSE. We call on our few remaining international trading partners who still maintain restrictive measures, to fully adopt recognised international standards."