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WEEKLY PUBLICATION OF THELIVESTOCK AND MEAT COMMISSIONFOR NORTHERN IRELAND

Saturday 19 October 2019 Issue No. 2591

PRIME cattle throughput inNorthern Ireland (NI) last weektotalled 7,697 head which brings

the prime cattle kill for the six weeksending 13 October 2019 to 44,837head. Current levels of throughput arerunning well ahead of previous years asoutlined in Figure 1.

During the corresponding six weekperiod in 2018 40,212 prime cattlewere killed locally while throughputtotalled 40,023 head in the sameperiod in 2017. Current levels ofthroughput are 12 per cent ahead ofthe corresponding period in both 2017and 2018

While there has been an increase in thenumber of beef cattle being processedthe average carcase weights have alsobeen on the increase. As outlined inFigure 2 the average prime cattlecarcase weight during the six weeksending 13 October 2019 was 347.4kg,9.2kg ahead of the correspondingperiod in 2018 and 10.2kg ahead of thesame period in 2017.

Reports have indicated that with areduction in deadweight cattle prices inNI some producers are pushing cattleinto heavier carcase weights in anattempt to maximise returns per head.

With more prime cattle passing throughNI processing plants and higher averagecarcase weights the volume of primebeef handled by local processors hasalso increased. In the six weeks ending13 October 2019 local plantsprocessed 15,579 tonnes of beefcarcases, a 14.5 per cent increase fromthe same period in 2018.

Great BritainThere has also been an increase inprime cattle throughput in Great Britain

(GB) in recent months. DuringSeptember 2019 (latest available data)140,453 prime catle were slaughteredin GB, a 6.5 per cent increase from thecorresponding period in 2018.

Unlike in Northern Ireland howeverthere has been no notable increase in

average carcase weights in GB in recentweeks when compared to this time lastyear. During September 2019 theaverage prime cattle carcase weight inGB was 338.3kg, up slightly from the337.3kg recorded in September 2018.During September 2019 there were58,100 tonnes of beef from prime cattleprocessed by plants in GB, a 7.2 percent increase from the 54,100 tonnesprocessed in September 2018.

Cow beef productionDuring the six weeks ending 13 October2019 14,485 cows were killed in NI atan average carcase weight of 303kg.This was an increase from the 13,244cows killed during the same period lastyear at an average carcase weight of

298kg. This increase in throughput andcarcase weights has resulted in an 11per cent increase in the volume of cowbeef processed by local plants year onyear.

Meanwhile in GB cow throughput duringSeptember 2019 totalled 47,880 head,marginally lower than the 47,907 cowsprocessed in September 2018. Therewas however a notable increase in theaverage cow carcase weight from287kg in September 2018 to 300kg inSeptember 2019. This has resulted in a4.5 per cent increase in the volume ofcow beef processed in GB year on year.

INCREASE IN LOCAL BEEF THROUGHPUT

Figure 1: Weekly prime cattle throughput in Northern Ireland during the 2017-2019period

Figure 2: Average prime cattle carcase weights in NI during the six w/e 13/10/2019and the corresponding periods in 2017 and 2018.

NI Prime Beef Productionsix weeks ending 13/10/2019

Throughput: 44,837 head (+12%)

Avg carcase weight: 347.4kg (+9.2kg)

Beef processed: 15,579 tonnes (+14.5%)

GB Prime Beef Productionsix weeks ending 13/10/2019

Throughput: 140,453 head (+6.5%)

Avg carcase weight: 338.3kg (n/c)

HUGE EXPORT OPPORTUNITIES IN JAPANTHIS week LMC teamed up with

Invest Northern Ireland indelivering a seminar focusing on

opportunities for the meat sector inJapan. The event was well attended bykey producer and processorstakeholders from the red meatindustry. Early this year the UK regainedaccess to the valuable Japanese marketfor both beef and lamb with theagreement estimated to be worth atotal of £127 million over the first fiveyears of access.

The lifting of the ban followed a seriesof visits and negotiations between UKand Japanese officials, whichculminated in an inspection of UK beef

and lamb production systems in 2018.The visit was organised and funded bythe UK Export Certification Partnership(UKECP), of which LMC is a foundingmember.

Japanese beef marketJapan is the third largest economy inthe world and with a population of126.7 million people offers hugeopportunities for meat exporters withthe right level of access.

Demand for meat is steadily increasingin Japan as the popularity of fishcontinues to decline. This shift awayfrom fish has created opportunities forother proteins in the Japanese marketas any growth in overall meatconsumption is limited by a decliningand aging population.

For the next five years, meatconsumption growth in Japan will bemainly driven by increases in demandfor pork and poultry. Meanwhile beefconsumption has the potential to growstrongly in Japan however overallincreases in consumption will be limited

by a decrease in domestic productionand global supply constraints.

Demand for imported beef from boththe retail and foodservice sectors hasgrown rapidly in Japan as it tends to bemuch more affordable compared todomestically produced product.Increasing food service and ready-to-eatdemand in particular has contributed tothis higher level of demand as well as achange in consumption habits byyounger generations towards thick-cutsteaks and leaner meat

Japan is currently 60 per cent reliant onimported beef to meet the growingconsumer demand with the US andAustralia dominating the market. Totalbeef imports are forecast to reach justover 800,000 tonnes cwe during 2019.While demand for carcase beef isgrowing the demand for offal productsin Japan is also significant in terms ofboth volume and value. Japan isforecast to import just under 75,000tonnes of offal during 2019, of whichthe US is expected to account forapproximately 40,000 tonnes. There is

a particularly strong market for tonguesin Japan and this accounts for themajority of beef-offal imports from theUS.

Japanese sheep meatSheep meat consumption in Japan is a

very niche market and represents onlya small fraction of overall meatconsumption. Demand for sheepmeatis growing but from a very small base.With little or no domestic sheepmeatproduction in Japan the market is totallydependent on imports.

Image 1: Access to the Japanesemarket is expected to be worth £127million over the next 5 years.

Image 2: Speakers at Invest NI’s Meat Opportunities in China and Japan Seminarheld on Thursday 17th October 2019.

Average carcase weight (kg)

Prime cattle throughput