Factory quotes: Beef prices strong but with 'capacity to drive on'
Factory quotes for cattle remain strong at present, but there is capacity there for beef prices to "drive on further", according to the national livestock chairperson of the Irish Farmers' Association (IFA).
According to Declan Hanrahan, prices - as of today (Wednesday, February 5) - are giving "well above" the present quotes, with steers quoted at €6/kg to €6.10/kg, but some buyers prepared to pay up to €6.20/kg.
Heifers, meanwhile, were quoted at €6.10/kg to €6.20/kg, but with some prices up to €6.30/kg base price.
Flat prices were ranging from €6.50/kg to €6.80/kg as of today.
Hanrahan told Agriland: "They're giving good flat prices...especially on the Angus breed cattle, which would include your in-spec bonus and your Angus bonus as well.
"There's good flat prices been given across all, for both Friesians and Anguses, and a mix of both," he added.
On cows, Hanrahan said that plainer P grades were getting quoted around €5.20/kg, and up to €6/kg for heavy U grade cows.
And on young bulls, R grade bulls were being quoted at €6.30/kg, and up to €6.60/kg for U grade bulls.
Commenting on the current price situation, Hanrahan said: "There is huge demand for stock from the factories. The scarcity within our own market and the scarcity across the UK and Europe is driving on the price."
However, he noted that there is still scope for further increases, looking at prices elsewhere.
The IFA livestock chairperson said that UK beef prices have increased by the equivalent of 18c/kg in the past week, pushing prices there to the equivalent of €7.62/kg.
"You have €1/kg in the difference to our own price. That's showing there is a capability for more price increases to be passed back to farmers.
"The UK beef price since January 1 has risen by 60c/kg and that's showing, again, we have more capacity in the market, and the Northern Ireland price has increased by 25c/kg in the past week or so," Hanrahan added.
All this, he said, indicated that there is the "capability of more being paid to Irish farmers in the market".
"Our key markets are driving on and the demand there for our own product is strong. Factories are paying good prices, or above prices, for mart cattle also. With the key market, the UK market, with the price increases, there's a capacity for us even to drive on further," Hanrahan said.
