Irish beef back on the menu – first beef shipment reaches Shanghai
Irish beef exports to China suffered a significant setback in recent years following the detection by the Department of Agriculture, Food and the Marine (DAFM) of an isolated case of atypical bovine spongiform encephalopathy (BSE). Although it posed no risk to human health, Irish beef exports to China ceased immediately. It was a big blow for the sector, as Irish beef exports had been on a steady and encouraging trajectory up until May 2020: from 277 tonnes’ carcass weight equivalent (cwe) in 2018, to 10,287 tonnes’ cwe in 2019. Now that the export market is accessible again, Ireland has some catching up to do, but much of the infrastructure and many of the contacts in the region remain. “China is a huge, huge market for beef,” says Joe. “Total [global] imports into China for beef were almost 2.7m tonnes in 2022. It’s the biggest global importer of meat. We were out of the market for two and a half years. Prior to then, we had notable success in 2019. Irish exports to China for that period were on an upward trajectory.
“The industry had a solid network of customers built up. So, we are confident about hitting the ground running [again]. We’re not in the exact same position as we were when we lost beef access, but we’d be hopeful that the market will recover as people gain confidence,” he says.
A significant proportion of beef consumption in China happens within foodservice and while this almost disappeared during the Covid-19 pandemic and associated restrictions in place there, that is now turning around, he explains. “Now, people are eating out again in hotpot restaurants and that’s an important part of the business we’ll be going after,” says Joe.
Bovine spongiform encephalopathy
There are two types of bovine spongiform encephalopathy (BSE): classical BSE, which occurs through the consumption of contaminated feed; and atypical BSE, which is believed to occur in all cattle populations at a very low rate, and which have only been identified in older cattle. Ireland is internationally recognised as having the lowest possible risk status for BSE. The negligible risk designation in May 2021 by the World Organisation of Animal Health (WOAH), which sets trading standards for animals and animal products, provided independent verification of the effectiveness of Ireland’s control system for BSE.
Alternative cuts
As well as being a thriving market, China’s cultural and culinary differences also present an opportunity for Irish beef suppliers. Specifically, Chinese consumers pay premium prices for cuts that aren’t as popular in Europe and North America.
“Access to that market provides an alternative market for a range of cuts,” Joe explains. “They pay higher prices for certain cuts that tend to be the ones that don’t command premium prices in Europe, but work very well in Chinese cuisine.”
While Irish consumers have a taste for striploin and ribeye steaks, in China there’s demand for cuts of meat from the fore quarter, or the belly, explains Joe. “When we [last] exported, it comprised flanks, plates and briskets, which are relatively large pieces of meat from around the belly. Exported cuts also include rib fingers and oyster blade. They work well with Chinese cuisine and the ways of cooking there. Fat content [of these cuts of meat] is higher, but for many of the dishes they make, that’s not a negative.” Access to the Chinese market means that Irish farmers now have that alternative outlet for an assortment of cuts, that can attract higher prices – depending, of course, on the cut.
First shipment of Irish beef lands in Shanghai
Four months after the announcement that the ban on Irish beef exports to China had been lifted, the first shipment from Ireland – supplied
by ABP – arrived into Shanghai on April 24.
Bord Bia’s China manager, Conor O’Sullivan, who is based in Shanghai, said this was a welcome development after almost three years’ suspension. “Bord Bia is now engaged in an Irish beef relaunch campaign focusing on trade seminars, chef demonstrations, and media engagement. Over the next month, we will be exhibiting at two major international meat trade shows in China – the China International Meat Industry Exhibition (CIMIE) and SIAL China in May – to showcase Irish beef to Chinese buyers.
“After first entering in 2018, Ireland quickly established a reputation as a leading supplier of grass-fed beef in China. We had a lot of success building market share into higher value foodservice and retail channels. We are eager to regain that significant momentum in China.”
The road back
The re-opening of the market is, undeniably, positive but it was a long two and a half years, dotted with much negotiation between the Department of Agriculture, Food and the Marine, and its Chinese counterparts, explains Joe. “The main dialogue involved the Department of Agriculture, Food and the Marine with its counterparts [in the General Administration of Chinese Customs (GACC)] in China. Through diplomatic channels including the Irish embassy in Beijing, that was a protracted negotiation. The main thing to say is that we’re delighted to be back in there now, and we are looking to rebuild customer networks and channels, to maximise the value of exports, and regain market share as much as possible.”
Bord Bia market specialist, China (Meat), Declan Saruwatari, says that they made significant efforts to stay connected to key Chinese partners through its Shanghai office. “The Shanghai office has been ever present in maintaining and preserving market customer relationships throughout the suspension of Irish beef exports,” he says.
“It has been a long two and a half years for both our clients and their customers here. In the absence of Irish clients travelling to China throughout the pandemic, we have made a strong effort to keep in contact with key partners on the ground and keep them updated and informed on Irish beef and the production situation in Ireland. We were frequently contacted by customers awaiting good news on the resumption of Irish beef exports.”
Rules and regulations
Exports and regulations are inextricably linked, and Ireland has proven through the Department of Agriculture, Food and the Marine’s surveillance programme, that it is one of the safest – not to mention most sustainable – places in the world to produce and supply top-quality, grass-fed beef.
“It’s all prime beef,” Joe says of the Irish beef bound for China. “One requirement is that cattle need to be under 30 months of age, so while we’d love to supply more of the beef we produce, only a subset is eligible. But every single kilogramme of beef we send is of the highest quality."
The requirements of the Chinese market today are basically as they were in 2019, explains Joe. “For beef to come from Ireland to China, it must be processed by approved meat plants. A total of 21 Irish meat plants were approved here by the Chinese authorities in 2018 and 2019. There are other conditions associated with disease status and animal-health testing status of the farm.
“We’d estimate that less than one half of the cattle processed are eligible for the Chinese market – maybe they are not slaughtered in the right meat plant, or are aged over 30 months, or are from a restricted herd for TB-related reasons,” he explains.
But these conditions serve to ensure that only the best beef makes it from our green fields and onto Chinese plates. “Irish beef exporters know and understand the market well, and they’re picking the cuts that are most popular in China, and marketing them accordingly.”
Spreading the word
Bord Bia’s relaunch and marketing strategies are in full swing, explains Joe. “Bord Bia has a full plan in place for the relaunching of Irish beef in China,” says Joe. “This incorporates trade seminars, engagement and events with high-profile chefs, a presence at the SIAL trade fair, PR and WeChat advertising, as well as the Government-led trade mission to China (May 2023). It will support exporters in re-engaging with customers in the marketplace that had placed Irish beef in a strong position at retail, online, and foodservice and progress from that platform as the wider Chinese market takes off again.
“China, at the moment, can provide a price premium on a number of forequarter cuts. This is not yet at the level of the more significant price advantage that China provided in 2020, when import demand and relative prices were stronger. However, as China emerges from Covid-19 restrictions and the foodservice market normalises this should broaden the level of opportunities.”
In April, Bord Bia welcomed 15 Chinese government representatives to Ireland for a comprehensive two-week knowledge transfer programme on an itinerary involving visits to Irish farms and processors as part of the EU Pork and Poultry campaign. This campaign is running concurrently with the EU Beef and Lamb campaign in China.