The Irish Farmers’ Association (IFA) National Livestock chair Brendan Golden has advised beef farmers to reject lower quotes being offered by some factories.
He said that deals 10c/kg above quoted prices are available with steers making up to €4.70 to €4.80/kg this week and heifers still securing deals of up to €4.85/kg base price.
“Supplies of finished cattle are tight and will tighten further over the coming weeks and months based on projections for the throughput for the year.
“Live export demand for forward store and finished cattle from Northern Ireland will also add important competition to the trade,” Golden said.
“Based on Bord Bia supply projections for the year, 30,000 less cattle are anticipated for slaughter in the coming months and with grass cattle slow coming to market throughput is expected to remain tight in the coming weeks,” he added.
Golden said strong beef prices in the coming weeks and months are “vital” if factories want a constant supply of prime cattle year around.
Beef
The IFA Livestock chair said that current beef prices are not reflecting the costs facing farmers this year.
He said that the “persistence of factories in dropping prices is compounding the situation”.
Golden said there is now a differential of 13c/kg between our price and the Bord Bia Prime Export Benchmark price.
“While prices have weakened in our key export markets it is not acceptable that our factories are seen as leading these price drops,” he added.
Golden called on Bord Bia and factories to “do more” to position Irish beef at the higher end of export market and “return prices that reflect our on-farm costs producing beef of the highest standards”.
“Factories are acutely aware of the production costs increases associated with cattle finishing which is set to increase a further 3% in 2023 up from the 28% increase in 2022 based on Teagasc analysis,” the IFA chair said.