The Irish Farmers’ Association (IFA) has credited tight supplies factory fit cattle and strong market demand for improving beef prices.
The chair of the association’s livestock committee Declan Hanrahan said the current conditions had forced factories boost their offerings to beef farmers this week.
“The tide has now turned, following a number of weeks of factories taking advantage of stronger than expected supplies of cattle to reduce prices due to the weather difficulties faced by farmers,” he said.
Beef prices
According to Hanrahan, factory agents have been instructed to “leave no cattle behind” this week as the anticipated tightening of numbers of suitably fleshed cattle starts to materialise.
He said that this means beef factories could struggle to fill lucrative contracts.
“Agents are freely offering €5.10/kg and €5.15/kg base prices for steers and heifers respectively, with higher prices for larger and specialist lots.
“Demand for cows has remained firm, with prices ranging from €4.30/kg to over €5.00/kg depending on grade.
“Prices paid by factory agents in marts for finished cattle and cows are regularly well above what some are quoting.
“The mart trade is very much a credible alternative outlet for farmers, particularly those selling smaller numbers to secure higher prices,” he said.
Demand
The IFA Livestock Committee chair said that demand is set to increase further over the coming weeks and months boosted by the seasonal demand for beef and the bounce from the upcoming Euro 2024 championships in Germany.
He said the Average Prime Irish Composite Price to-date this year is 7c/kg below last year’s levels – while the Average Prime Export Benchmark price is up 6c/kg.
UK prices to date are 23c/kg above last year’s average price and are currently over 70c/kg above our price, he added.
Hanrahan said that based on Bord Bia projections there will be 70,000 fewer cattle between now and year end available to factories with supplies also predicted to be tight in the UK and EU markets over the coming months.
He said beef prices must move on to reflect the reality of the market place and crucially the production costs on farms.