The Irish Farmers’ Association (IFA) has said a gap of 47c/kg has opened up between the Irish beef price and the Bord Bia Prime Export Benchmark price as UK and EU prices surge in recent weeks.
IFA Livestock chair Declan Hanrahan said R3 male cattle prices in the UK are now over €1/kg above the Irish price with the EU Young Bull price 20c/kg higher than in Ireland.
According to the farm organisation, the prices combine to create a differential of 47c/kg which is “heading for the biggest gap between our price and the Export Benchmark Price since Bord Bia started compiling the figures”.
The IFA Livestock chair said: “There is no justification for this level of divergence between our beef price and the prices in our key export markets.
“Supplies of beef cattle are not meeting factory demand and are predicted to tighten further over the coming weeks and months where throughput is expected to be back 30,000 head on the same period in 2023.”
Hanrahan said it is a similar supply situation in most beef producing countries, creating opportunity and potential for meaningful and sustained beef price increases.
“Farmers with cattle to sell should not be misled by factories or their agents. Prices are surging in our key export markets, supplies are tight and demand is strong,” Hanrahan continued.
“There is capacity in the marketplace for significant beef price increases and factories must close the unacceptable price gap of 47c/kg with the Bord Bia Prime Export Benchmark Price by returning higher beef prices to farmers.”
Beef price
Meanwhile, factory quotes for finished beef cattle this week continue on firm footing with prices steady and increased breed bonuses set to kick in from next week.
The Certified Irish Angus producer group’s increased 30c/kg off-season bonus, available for eligible pre-booked cattle at ABP Food Group and Kepak sites will kick in on Monday, October 7, until Friday, November 15.
Meanwhile, Irish Hereford Prime’s increased breed bonus of 25c/kg will be available for eligible pre-booked cattle at all ABP Food Group and Kepak sites from October 14, 2024 to November 15, 2024 (Week 42-46).
Bullocks (steers) are being quoted at prices ranging from €5.00-5.05/kg on the grid in general this week. Heifer price is in a similar position to last week with €5.05-5.10/kg on the grid in general being quoted.
At the higher end of the price scale, €5.10 and €5.15/kg is available for eligible steers and heifers respectively for in-spec animals with carcass weights ranging from 300-400kg.
P grade cows are being quoted at €4.40/kg this week with €4.50/kg being quoted for O grade cows. €4.70-4.80/kg is being quoted for R grade cows with €5.00/kg and above on offer for U grade cows.
Bull prices have remained relatively steady since late July with the average young bull price paid hovering between €5.30 and €5.35/kg for U=2+ bulls.