The Irish Farmers’ Association (IFA) has called for beef processors to pay prices for cattle that keep pace with prices in the key markets for Irish beef.
The association has said that strong demand for beef in those key markets is driving prices at present.
Brendan Golden, the IFA’s national livestock chairperson, said that supplies of cattle for Irish processors are remaining tight.
Golden cited data from market analysis firm Kantar on supermarket sales for beef, which shows that spend on beef is up 11% year-on-year, with volumes holding firm.
“With tighter supplies of cattle in the UK, market prices have risen by 7p/kg in the past week,” Golden said.
He added: “EU young bull prices have strengthened and when combined with the UK price in the Bord Bia Prime Export Benchmark Price, a gap of 37c/kg has opened up with our prices.”
However, Golden said that, despite Irish prices increasing over the past number of weeks, those increases “are not keeping pace with prices in our key markets and must move further and faster”.
“Factories can and must do more on beef price to reflect the reality of the market conditions they are selling into.
“Farmers should not be misled by negativity from factory agents. Beef markets are strong, supplies are tight and there is capacity for further price increases from the market,” Golden added.
Dawn-Kildare deal impact on beef prices
In related news, the IFA has warned that the acquisition of Kildare Chilling by Dawn Meats will reduce competition in the processing sector and have a negative impact on beef prices.
On Friday (September 22), the Competition and Consumer Protection Commission (CCPC) confirmed that it had ended its investigation into the proposed acquisition, finding that it would not substantially lessen competition.
This paves away for the purchase of Kildare Chilling by Dawn Meats to go ahead.
However, IFA president Tim Cullinan said that the deal will reduce competition in the processing sector to the detriment of farmers in the beef and sheep sectors.
“Allowing any reduction in competition between buyers of cattle and sheep is not acceptable. The CCPC has failed farmers yet again in facilitating this acquisition,” Cullinan said.