Some of the cheapest beef in the commodity market is actually from New Zealand...much cheaper than North American grain fed beef, and WAAAY less than locally grass fed beef. They can simply produce and ship it cheaper than we can...regardless of the distance. Law of supply and demand allows this expansion from outside the US. There's a strong demand now and not enough cattle in the US to fill the demand - no matter how they are fed.

Chip Morgan

On 1/22/2015 3:17 PM, Joe Emenheiser wrote:

[log in to unmask]" type="cite">Beth, I would guess that the €1/kg greater returns compared to current European markets create a situation where not much financing is required. The bottom line is that we have huge untapped demand for beef (especially grassfed beef) in the eastern US that is not currently being supplied. If we can't (or don't) produce a consistent, quality product in adequate volume to meet that demand, someone else will step in who can. Enter Australia, New Zealand, and now, Ireland. I would also guess that the American market is sustainable for the Irish as long as current prices hold, which are unlikely to change much unless the U.S cattle inventory increases, in this case particularly within the grass finishing sector.

Joe

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