Recovery in UK beef exports set to be slow

Date: 15/07/1999

By Simon Taylor

THE UK's beef exports are expected to resume only slowly this year despite the decision to lift the three-year ban from 1 August.

British meat industry sources predict that sales will only amount to around 5,000 tonnes this year, compared to the 246,000 tonnes the UK was exporting before the BSE scare prompted the EU to ban UK beef from foreign markets in March 1996.

They believe that it will take a long time to rebuild the market to anything like earlier levels in the face of consumer reluctance to buy British beef, the strength of sterling and competition in outlying markets.

Despite yesterday's (14 July) decision by the European Commission to lift the ban, no exports are expected to leave UK shores on 1 August. But the industry expects a gradual increase in the sale of small quantities of high-quality catering beef by the end of the month.

One of the problems holding back British meat exporters is the need to ensure that meat is eligible for export. The strict conditions imposed on the UK in return for an end to the ban mean that only one meat plant in south-western England will be able to supply meat up to EU standards in the initial period.

Under the conditions laid down by the Commission and supported by EU veterinary experts, meat for export must come from animals born after 1 August 1996, between six and 30 months of age. Suppliers must be able to trace every shipment of meat back to the herd it came from and must guarantee that the animal's mother did not contract BSE.

Over time, the UK industry is hoping to regain valuable exports markets in South Africa, the Middle and Far East. Industry sources say the Commission could make their task easier by making minor changes in the EU's system of exports refunds which allows higher priced EU beef to be able to compete on the world market.

The decision to lift the ban has come partly in response to the falling rate of BSE in the UK. Only 900 cases of BSE have been reported in the UK so far this year compared to 29,000 a year at the peak of the crisis.

In a separate decision, the Commission last week decided to extend restrictions on exports of Portuguese beef until August 2000 because of the growing number of BSE cases in the country. But exports of fighting bulls to Spain were eased and Lisbon was given permission to send its meat and bonemeal abroad to be disposed of by incineration.