Home beef still bread and butter, warns MLC

By James Garner

DOMESTIC markets should remain beef producers priority despite the export ban being lifted on 1 August.

Europes leading restaurants and hotels will be the main recipients when the first boneless beef consignments are exported in August, and not Continental supermarkets, MLC export specialists predict.

But with only one abattoir, St Merryn Meats, registering for the date based export scheme, the quantity will be small – only 5000t in the first year, says an MLC spokesman.

“We learnt from the BSE crisis that the quality end of the market remained strong; people kept buying steaks.”

Because of this, regaining overseas confidence in British beef will depend on selling to restaurants, and then consumers will promote demand in supermarkets, adds its spokesman.

But MLC beef analyst Duncan Sinclair warns against gearing up for such a small export market. “About 99% of British beef sold will still be to the domestic market.”

Demand, he says, will be driven by home markets for some considerable time. And despite research indicating that high quality suckler animals will lead exports to Europes catering market, Mr Sinclair says producers should concentrate on doing the best job they can, producing cattle fit for high quality domestic trade and treating exports as a bonus.

That advice is echoed by SAC beef specialist Basil Lowman. “We should learn from pre-BSE days when export ruled supreme; dont let exports drive your system, we have a good home market and should produce for this.”

This might mean a move from intensive 12-month beef production to 18-month steer based systems which incorporate a summer at grass.

There is some evidence that grass fed beef may taste sweeter and improve eating quality, says Dr Lowman.

But consumer perception – based on the market perceiving grass finished beef animals to be higher quality and more natural – may be a greater stimulus for change to less intensive systems, he adds.

Despite suggesting there may be a move to less intensive systems, he urges producers to concentrate on quality beef which promises better returns.

According to Dr Lowman, there is a £250 difference in income between organic Aberdeen Angus beef at 230p/kg carcass weight, and poor quality and conformation beef from the dairy herd at 145p/kg.

“Dairy beef has to be produced 50p/kg liveweight gain more cheaply than top quality premium beef claiming top price; this is hard to do,” he warns.

But where quality beef cattle are available, co-operation and communication might help develop the export market, says NBA chief executive Robert Forster.

He stresses this will make it easier to secure export qualified cattle and grow the market.

“This means passing on information about cattle at auction markets, particularly regarding dams. If a ministry vet is on your farm for any reason, dont waste the opportunity.”

Ensure ministry vets record ear tag numbers of dams who are alive six months after giving birth to eligible cattle, he adds.

Despite likely export destinations being pre-BSE markets in Belgium, Holland, France, Italy and Spain, there is little information on what type of beast is required.

But quality and leanness are key, says St Merryn producer club manager, John Dracup.

“We need to market a high quality product with integrity. It needs to be quality to attract the better price and regain customers.”

Initial supply will be met by St Merryn producer club members, he adds.