Irish beef farmers have lost more than “€100 million” over the first six months of the year according to the Irish Farmers’ Association (IFA).
The organisation’s national livestock chair, Brendan Golden, said beef farmers have been operating “well below the breakeven price” projected by Teagasc for the year to date.
But Golden believes that improving market conditions and tightening of supplies must now be reflected in beef prices.
According to the IFA, prices in the EU have strengthened in recent weeks.
Golden said: “The Prime Export Benchmark Price is now effectively on par with our price, rising 30c/kg over the past two weeks, reflecting the turnaround in market conditions in our key export markets.
“As markets rebound and supplies tighten, factories must start reflecting this reality in higher beef prices.
“Beef prices in the UK are over 60c/kg above ours, EU prices have strengthened in recent weeks all contributing to a much stronger Prime Export Benchmark Tracker price compiled by Bord Bia.”
On the week ending Saturday, July 1, the Prime Irish Composite Price was €4.95/kg while the Prime Export Benchmark Price was 2c/kg higher at €4.97/kg.
According to Golden, “improving market conditions have added significance as supplies of finished cattle tighten on the ground”.
Beef price in factories
The IFA national livestock chair said: “Based on Bord Bia supply projections for the year we are facing into at least 30,000 less finished cattle over the coming months.
“As live exports of finished and forward store cattle to Northern Ireland increase this figure could be higher as the year progresses.
“Factories have no hiding place and must reflect the reality of the marketplace in stronger beef prices.”
According to Golden, demand for beef “is evident with the strength of factory agent activity in marts for all types of forward store and finished cattle where prices are regularly exceeding what some factories are offering finishers”.
“Farmers should resist the negative propaganda of factories and their agents, markets have turned and beef prices must rise to reflect this reality and the production costs on beef farms,” he added.