Prospects for Organic Meat in Challenging Times Presented by John Brennan.

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Presentation transcript:

Prospects for Organic Meat in Challenging Times Presented by John Brennan

Coop Role  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  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 = GBP Euro United Kingdom Pounds 1 EUR = GBP 1 GBP = EUR

Coop Outlets  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  € €4 generally quoted  Flat rate all grades except P’s  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  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  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  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?  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?!