Transcript Prospects for Organic Meat - Teagasc

Prospects for Organic Meat in
Challenging Times
Presented by John Brennan
Coop Role
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To provide market outlets for its
members produce
Provision of Education and Training
Opportunities .
Encourage members to avail of
opportunities to improve their
incomes.
Lobby for its members through all
available means
Organic Beef Market
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Much more competitive marketplace.
Weakness of sterling making it difficult to
maintain prices to farmer.
Premium to farmer still at 30% over the
conventional
People selling directly getting more for
their product
Huge opportunity in rare breed beef
directly marketed.
1.00 EUR = 0.916178
GBP
Euro
1 EUR = 0.916178 GBP
United Kingdom Pounds
1 GBP = 1.09149 EUR
Coop Outlets
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Beef Contract in place since 2006
Main Customer M&S Ireland
Other wholesale and Food Service
Business.
Committed to working with Slaney
Foods to expand the market.
Initiated mobile butcher concept in
North West of Ireland
Beef Prices
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€3.90 - €4 generally quoted
Flat rate all grades except P’s
15-20 cattle per week
Price based on cattle collected ex
yard.
Strong commitment to work to
bring that figure to 20/week (and
beyond).
Organic Lamb
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Market Conditions Difficult
Producer sentiment poor.
Seasonality problem
Lack of any market outside of
Ireland
Poor differentiation of organic
product
Irish Organic Market about 11,000
lambs (Scotland 100,000)
Coop Role
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Liaise with Linden Foods to supply
M&S on seasonal basis.
Also liaise with ICM and butchers.
Commenced matching store
producers with finishers.
Encourage more producers to
market their product directly
Issues
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Consumption of lamb down across Europe
No export markets-reliance totally on
home market.
Supermarkets taking an unrealistic
margin on organic lamb.
Cost of feed
Essential for a minimum base price be
set for hoggets to ensure continuity of
supply.
Sheep essential for rotations and as
pasture improver on organic farms.
Do you have any other comments about the organic lamb market ?
“ Non Existent”
“Distance to processor an issue”
“Prices not sufficient to make increasing flock numbers a viable financially rewarding
proposition”
“ No outlet for small producer in Cork”
“Demand dropping each year”
“ Over the past 10 years the butchers sale of organic lamb has reduced by 40%. The
consumer is not keen on lamb even organic lamb. Ihave reduced my flock size
accordingly, as organic beef is far more popular”
“There isn't an organic lamb market to my knowledge”
What can be done?
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The product needs more promotion but
how does this fit with Bord Bia needing to
promote conventional lamb?
More inroads required for the product in
the home market
Direct marketing initiatives required.
Leitrim Organic Farmers Coop will begin
selling online in May.
Supermarket taking a 50% margin cannot
be sustained.
Is the future in Organic Fish?!