Production Costs Cause Decline In Output
SPAIN - Spain is finding it difficult to sustain the level of its beef production system. Dependent on imported animals and on expensive intensive feeding costs, its beef output has been decreasing progressively over recent years due to the absence of profitability at farm level, says Cecilia Ruiz, Manager, Bord Bia Madrid.
29 March 2010
1 minute read
Meanwhile, beef imports in 2009 increased by 23 per cent and exports decreased by 29 per cent. These developments represent an opportunity for Ireland, provided we can compete in the market.
The Spanish Department of Agriculture as part of its “observatorio de precios” (agricultural products “price watch”) has made an estimate of the costs involved in the production of 1kg of beef (bull/heifer of approx. 16mths of age) in Spain.
A traditional reluctance to import beef is diminishing if it offers a good price-quality relationship relative to domestic product. This has seen Spanish beef imports rise by more than 30,000 tonnes since 2005 to reach 125,000 tonnes product weight in 2009.
These developments highlight potential growth opportunities for Irish beef on the Spanish market. Ireland represents 12 per cent of Spanish beef imports with volumes in 2009 standing at around 14,000 tonnes. This leaves Spain as the 5th most important market for Irish beef on the Continent. In addition, Irish exports of live cattle to Spain have averaged more than 50,000 head since 2005.
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