Boost for farmers as Italian retailer looks for large numbers of 'green' Irish stock

Premium prices could potentially be available to beef farmers who can prove their stock has been reared free from genetically modified feed and antibiotics.

It has emerged that farmers at the buoyant autumn weanling sales can access a premium market by declaring their animals have been reared entirely free of antibiotics and GM feed.

Rising consumer demand in Europe for GM-free beef has seen retailer Co-op Italia look to the Irish marketplace for more beef and live cattle to fill feedlots ahead of the weanling sales.

"The retailers are decided on what they see are consumer issues. In Italy GM-free is a very important consumer issue and retailers are selling on that basis. In Ireland GM isn't an issue," said Pat O'Rourke who works with Co-op Italia in Ireland.

"Ireland is best placed to meet the specification of whole of life, antibiotic-free beef," said Mr O'Rourke.

Co-op Italia sources 250,000 weanlings a year from suppliers for its retail chain of over eight million customers.

Over 200,000 weanlings are sourced in France, but the Italians have signalled they could now seek as many as 50,000 or more animals from feedlot buyers in Ireland as antibiotic usage here is low in comparison to many European countries.

A former ICMSA president and chair of Northern Ireland's Livestock and Meat Commission, Mr O'Rourke said the low usage of antibiotics would help drive up Irish numbers with the estimated 5,000 currently exported to feedlots which supply Co-op Italia expected to grow.

Co-op Italia and the Italian Ministry will audit a number of farmers signing up to supply weanlings through the marts to Irish and Italian feedlot buyers. This is to ensure that the animals have been fed on GM-free rations.

In addition, a hair sample will be taken from the weanlings which can detect whether antibiotics are present.

Mr O'Rourke said the 70-80 finishing farms supplying around 30,000 animals to Co-op Italia through Kepak's KK Club also guarantee their cattle are finished on GM-free rations.

He added that the audits would also examine the trail of dockets from the feed merchants as rations fed to cattle can contain imported soya hull from South America where GM seeds are sown.

To date, Co-op Italia has licensed and approved three mills - Aurivo, Grennans and Quinns - for the provision of GM-free meal.

Bord Bia's beef specialist Mark Zieg said a move towards GM and antibiotic-free produce was an evolving process. Bord Bia has been working for several years with Kepak's KK Club in response to Co-op Italia's GM-free beef specification.

He said the GM-free produce is becoming a bigger selling point in other markets, including Germany, Holland and Sweden, as retailers and blue chip customers try to "second guess" what the consumer wants.

Contamination

Mr Zieg said there would be a "cost factor" for GM-free produce but it may also bring opportunities for crops such as beans.

He warned a lot of mills would see a "risk" as there could be contamination from GM-feed from mixing bins or cargo-holds on boats.

"If the return is there and it is worth the farmer's time and investment to do it then it can be done, but we can't be pricing ourselves out of the market," he said, adding that Italy is already a valuable market for Irish beef.

Marts' body ICOS has confirmed it is moving as swiftly as possible to devise a system which will allow farmers to declare if their animals are free from antibiotics and GM-feed and display this information on ringside boards.

ICOS spokesman Ray Doyle said it was fully behind the development as it could mean a strong market for Irish weanlings.

"The market will decide whether there is a return on it or not. It is worth trying it, the market is going to decide how much extra they will get," he said.

Mr Doyle said they were still in the preliminary stages of working out how they would identify the animals.

“In essence it will probably involve an electronic signature from the farmer on the tablet and we’ll get it sent onto the board. There is going to be costs involved but the marts are willing to do it as long as we see the benefits.” 

However, he said there was strong potential there as France is “locked up with Bluetongue” .

“We already have an easy win there in the antibiotic status,” said Mr Doyle, adding the GM feed may be a “bit more problematic”.

Mr O’Rourke said the cost of GM-free feed per weanling would “not be prohibitive. It means producers have an opportunity of penetrating a new market — the Italian retail market — which is significant.

“Co-op Italia have decided  from next year to market a GM-free, whole-of-life antibiotic free beef product. This is because of the concerns of the general public about antibiotic resistance bacteria addition”

He added that Co-op Italia does not buy livestock directly, but a premium was paid to suppliers of finished animals through the KK Club.

GM-free beef commands an additional €1/kg on Italian supermarket shelves.

IFA president Joe Healy said there may be opportunities, but there would need to be a “substantial premium paid for this type of niche market”.

ICSA president Patrick Kent  said the demand for GM-free beef systems was growing.

“Ireland cannot have it both ways: if we want to sell ourselves as a premium, natural,  grass-based producer of quality assured beef, lamb or dairy it will be impossible to remain in denial about GM,” he said.

Meanwhile, Ornua, which markets Kerrygold globally, has confirmed that it has had discussions with the co-ops about consumer trends including the use of GM-feed in the dairy herd. This was sparked by the strong interest  from German consumers for GM-free butter.