Libyan thumbs-up to Irish live exports

By Farmers Weekly staff

IRISH live-cattle exports to Libya, which had been worth IR70 million (GB56m) a year, are to resume in the next few months after a four-year ban following the BSE crisis.

An agreement signed in Tripoli last week between Irish Foreign Minister Brian Cowen and his Libyan opposite number clears the way for the resumption of a trade that, at its peak, accounted for over 80,000 head of cattle a year, plus 10,000 tonnes of beef.

It took a personal appeal from Prime Minister Bertie Ahern to the Libyan leader, Colonel Gadaffi, to have the ban lifted, and Ireland will now be the only EU country officially listed by Tripoli for the supply of cattle and beef.

While it will take some time to rebuild Libyan exports, the resumption of the live trade is a major boost for the IR1bn-a-year Irish industry, at a time when beef sales to key markets like the UK have still not recovered to pre-BSE levels.

Producers see a thriving live trade as providing the essential element of competition that prevents Irish processing plants operating as a cartel and deliberately depressing prices.

A relatively new customer is Lebanon, which now takes almost 80,000 head, and there are hopes that the Libyan agreement could help win back live markets in Egypt and Iran, also lost in the BSE aftermath.

However, in its traditional market, the UK, Irish beef is still some 5000t a year below its 1995 level of 100,000t, despite a 20% price advantage in the currency differential with Sterling.

Its a very difficult market and there is still a strong preference for UK beef at retail level, said a spokesman for Bord Bia, the Irish Food Board.

Irish farmers Association president Tom Parlon welcomed the Libya development as a major boost for the livestock sector.

Farm minister Joe Walsh was even more enthusiastic. I am confident it will lead to a significant recovery in beef prices and to producer earnings, he said.