Farmer Writes: the importance of creating demand globally

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  The global population figures are continuing to rise, but beef farmers may not reap the rewards, writes Ciarán Lenehan.

  “It is vital that our farming systems are sufficiently productive in order to feed a growing world population, set to reach 11 billion by 2050.” 
   
  If I had a euro for every time I read this, or a gaggle of words along these lines… I still wouldn’t be able justify filling a pen with store bullocks at current prices. 

Yes, we are in the midst of a global population surge. But, where are the increases occurring and, more importantly what are the national trends and tastes?.

If Ireland’s population were to double overnight, in theory it would mean nothing for those looking to sell us beef. We export over 90% of what we produce. As an island, we are tripping over striploins.

It is forecast that twelve countries will account for over half of world population growth. Four of these are the India, Brazil, USA and Mexico; the first, third, fourth and tenth biggest beef exporters of beef in 2016.

There may be some opportunities in the USA, but prevailing prices and carcass treating protocols are shackling Ireland at present and in developing countries prices are much lower than ours: the term ‘selling ice to Eskimos’ comes to mind.

What of the rest?
Egypt, Pakistan, Philippines, Nigeria, Ethiopia, Indonesia and the Democratic Republic of Congo – add the per capita beef consumption of each and we still fall short of what the average Irish person consumes. Being an expensive protein, beef is not hugely popular in developing countries.

The last is the golden egg that is China, where at present the average person consumes one third of the beef put away by a European. But, this is a point on an upward curve - as a nation China is becoming better-off. Since 2011 beef consumption has risen by 10% and the price of manufacturing beef has increased by over 80%.

At the beginning of this decade, Chinese beef production had fallen by 8%.The Chinese beef-account is in the red. Though there are established Irish channels to China at present, the USA and Brazil are reaping the big rewards on offer. Brazil can chuckle at the fact that we hosted a Chinese delegation, which then ventured to Brazil and signed a major trade deal. Brazil’s low beef price is a potential thorn in our side as a competitor.

It is imperative that any possibilities to birth export opportunities and trading relationships are not passed upon. Creating demand is important for us all.