Access to China a priority for Northern Ireland beef

Gaining access for Northern Ireland to global beef markets particularly the US and China for a range of products must be regarded as an economic and political priority, according to Trevor Lockhart, chief executive of Fane Valley Group, which includes Linden Foods, one of the region's major beef and lamb processors.

Mr Lockhart said the key to "unlocking this potential will be obtaining the necessary veterinary and technical certifications. Industry and government have much to do in this regard.

"In parallel we must also develop the business models which will allow Northern Ireland to maximise the return from these exciting new opportunities and to fulfil the undoubted potential for the industry. Fane Valley is well resourced and ideally placed to play a full part in realising the vision for the future," he added.

Speaking at the county Armagh-based group's annual meeting, he said sales within the Linden Food Group (including the Slaney Foods joint venture in the Republic of Ireland) were largely unchanged at &pound336 million. 2014 had been "a particularly challenging year which resulted in reduced profitability within the red meat division".

He added: "Positive performances in our branded and added value beef and lamb activities were overshadowed by the pressures in primary beef processing. The demand for supermarket specification animals was intense in the aftermath of 'Horsegate' as processors sought to fulfil the requirements of the UK multiples.

"This initially pushed cattle prices to record highs. At the same time significantly reduced demand across Europe for manufacturing meat resulted in the build-up of substantial meat stocks. This eventually had a more depressive effect on cattle prices. The lower cattle prices did not however compensate fully for the reduced market returns and the end result was a reduction in processor margins, something that was experienced across the trade."

Referring to the wider agri-business environment, Mr Lockhart highlighted the changing dynamics of the UK retail environment and the associated supply chain pressures.

The Fane Valley Co-operative Group reported on a positive performance for the year ended 30th September 2014. A pre-tax profit of &pound6.8 million was recorded on group turnover which increased by four per cent to &pound553 million

Mr Lockhart described the performance as being 'a solid set of results achieved in a challenging market environment'. The co-op's net asset position also strengthened during the year growing by five per cent to &pound73.6 million while the society's net debt fell by nine per cent.

Another group business, Fane Valley Dairies saw the volumes of milk powder increase by 20 per cent while the quantity of butter reduced by 20 per cent reflecting the product mix and a strong emphasis on whole milk powder. As a result of the initial high selling prices in the year, turnover was at an all-time record level of &pound106 million, a 15 per cent increase. Fane Valley's direct supply milk pool increased through the year to over 240 million litres whilst work commenced on its three year investment programme with a new effluent treatment facility due to be commissioned in spring 2015.

"The next phase of investment will focus on new evaporation and packaging technology aimed at further enhancing the quality and functionality of the products we produce."