December factory quotes affirm that 2021 has drawn to a close on a strong note for both the cattle trade and the demand for beef.
Beef farmers have, no doubt, had more than their fair share of tough years for prices, and the direction of beef price and demand in recent months has been welcomed by most – if not all – stakeholders in the Irish cattle trade; but mostly, by beef farmers themselves.
According to figures from the Department of Agriculture, Food and the Marine (DAFM), the average R-3 steer price in the week ending December 11, 2021, stood at €4.24/kg.
The 2021 average R3 steer price is up significantly when compared the average R3 steer price of €3.72/kg in the corresponding week last year (2020).
Looking at the 12-month period of 2021, the average R3 steer price in the Republic of Ireland has increased by 52c/kg.
While the average R3 steer price did hit €4.20/kg in July 2015, the last time it surpassed €4.20/kg was July 2013 – over eight years ago.
At that stage, the average Irish R3 steer price was above the corresponding EU price. However, the opposite is currently the case, with Irish prices now behind EU prices – so there is cause for further optimism looking into 2022.
Cattle and beef prices in 2021
The year 2021 got off to a modest-enough start for cattle prices, with steers at €3.70-3.75/kg on the grid and heifers receiving base price quotes from €3.75/kg up to €3.80/kg in early January, 2021.
At the start of 2021, P-grade cows were trading at €2.90/kg, while O-grades were achieving from €3.00/kg up to €3.10/kg.
R-grade cows were hovering around the €3.20-3.30/kg mark.
However, as the year went on, prices began to rise and while many farmers feared a significant cooling of prices in the back end of the year, it never came; 2021 has drawn to a close with cattle price holding strong.
One of the best performers in the beef trade this year was cow-price, with fleshed cows strengthening in price as the year drew to a close.
Cow price did come under slight pressure in late October, with quotes dropping by 10-15c/kg.
However, it quickly bounced back and the final cow-price quotes of 2021 were €3.60, €3.70 and €3.90/kg for P, O and R-grade cows respectively, and €4.00/kg for U-grade cows – with more to be got in some cases.
However, as costs continue to significantly increase, the largest part of the gains made on beef price in 2021 will be swallowed up by soaring input costs which are continuing to rise.