The beef industry makes a substantial contribution to the Irish economy. In 1999, output from primary beef production, excluding direct payments, amounted to £1.03 billion (€1.3 billion) or just more than 2 per cent of GNP. Exports accounted for 90 per cent of production.
Exports of live cattle rose dramatically over 1998 to 416,000 head, accounted for largely by the increase in the export of weanlings to EU countries and beef exports stood at 550,000 tonnes. There are about 130,000 farmers in beef production and 5,000 people are employed in the processing industry. Three main players dominate the industry: Mr Larry Goodman's AIBP group with seven slaughtering plants; the Queally Group's Dawn Meats, with five abattoirs and Kepak with three. Fairoak, Liffey Meats and Kildare are in the second league, size-wise.
The report of the Beef Task Force, delivered to the Minister for Agriculture, Food and Rural Development, Mr Walsh, this time last year, concluded that there had been little investment in facilities or human resources in the industry in recent years. Indeed, the McKinsey report on the industry identified almost 10 per cent unused capacity in the slaughtering sector in 1997. This could be higher by now.
The task force reported that "radical and fundamental action is required by all parties involved in and responsible for the beef sector in Ireland to equip the industry to move forward into the 21st century". A major industry investment developmental programme, involving the modernisation and rationalisation of the processing sector was necessary, taking into account the need to maintain competition for cattle but a regional balance in the distribution of facilities. It said a market-led approach was required, through the development of high-value markets within the EU, meeting the needs of the consumer, and more effective selling on international markets.
It recommended:
A major investment and development programme, urgently, embracing all areas of the sector, leading to potential gains of £120 to £160 million over time;
The development of a market-led industry, with the aim of increasing the level of exports to the EU from 185,000 tonnes in 1997 to 280,000 tonnes in 2002;
Properly-funded promotional campaigns
Broadening of the market base in Third Countries, accompanied by a disciplined and co-ordinated approach to sales, underpinned by a code of practice;
A monitoring committee, comprised of producers, processors and State agencies to oversee the industry and a price transparency mechanism
The total level of investment required for a beef industry development plan, as envisaged in the Report of the Food Industry Development Group in December 1998 and confirmed by the task force, is estimated at £120 million.
