The strength of sterling has been one of the most significant factors affecting the price of finished cattle in recent months, according to Quality Meat Scotland (QMS).
The currency situation, which has seen a 10%-15% increase in the value of Sterling, has meant it has been difficult for processors to export, said Stuart Ashworth, head of economics with QMS. At the same time the market has become more attractive for imports.
“Provisional customs data for January and February highlight this challenge by showing exports of UK beef have reduced by around 2,500 tonnes (13%) while imports have increased by about 4,500 tonnes (11%),” he said.
“Add to that an increase in domestic supply of around 3,000 tonnes (2%) during January and February and we find the market has been working with around 8% more beef than a year ago.”
Looking at the latest statistics, Mr Ashworth said speculation about the impact of Polish beef imports was unfounded. There is, he added, also no evidence of beef from Poland going into Ireland and then being re-routed into the UK as imports from Ireland.
Responding to recent discussion about the impact of imports on the price which Scottish and UK beef farmers have been receiving for cattle, Mr Ashworth said there was no indication in the trade analysis of any malpractice taking place.
The most recently available Irish customs data shows Ireland imported just 1,957 tonnes of beef in January.
This compares with 1,437 tonnes in January last year, an increase of just 520 tonnes.
Almost 80% of the imports of beef into Ireland came from the UK with only around 10 tonnes coming from Poland.
“For the avoidance of doubt this is tonnes of beef arriving in Ireland so there is no evidence from trade analysis of any significant volume of beef from Poland going into Ireland and then being re-routed into UK via Ireland,” Mr Ashworth said.
Beef imports to the UK from Ireland, however, increased by 12% during January and February compared with last year.
This amounted to some 28,763 tonnes and accounted for 71% of all UK beef imports.