A shortage of beef across all of Ireland’s key markets is creating the opportunity for further significant price increases, according to the Irish Farmers’ Association (IFA) Livestock chair.
Declan Hanrahan said that ‘R’ grading steers in the UK are making the equivalent of €7.06/kg in latest reports and rising as supplies fail to meet demand.
He pointed to “a similar story” in our other key market, the EU, where a diminishing beef herd is impacting supplies of beef.
Beef price
The IFA Livestock chair said that Bord Bia predictions for year the year ahead are for a positive beef market with supplies remaining tight both here and in our key markets.
“Predictions are for 87,000 fewer cattle to be available for processing here and when combined with an expected continuation of strong export demand for weanlings, store and finished cattle factories will be under pressure to fill lucrative contracts,” he said.
Hanrahan noted that beef prices have risen again this week. Base prices of €6.00/kg are now on the table and flat prices of €6.45/kg have been offered by factories trying to source supplies.
The IFA Livestock chair said that demand for cow beef is extremely strong.
Prices are starting at €5.30/kg for larger numbers of P grade cows with top quality cull cows pushing to €5.70/kg and above in cases.
Hanrahan said numbers of beef cattle are expected to be lowest for the first half of the year which creates real opportunity for prices to rise further and close the gap with the UK price.
He said farmers should be aware of the strength of demand for beef and the capacity in the market place for further beef price rises.
“Farmers with cattle to sell should not be misled by some factories offering quotes well below what is available, shop around and sell hard is vital to force factories to close the gap with the UK price, factories need the cattle and they will have to move to the reality of the market place to get them,” he advised.