In the first three months of 2015 cow prices in the EU have started to recover, according to EBLEX.

The rise comes on the back of a decline of 12% in the average EU O3 cow price between April and December 2014.

It says that while some of the decline in 2014 can be attributed to the seasonal nature of the industry, the ban on exports to Russia had a significant impact.

The closure of the Russian market to beef from the EU impacted some EU countries more than others.

According to EBLEX cow prices in Germany and France, for instance, declined by 50c/kg in the second half of the year, while prices here in Ireland steadily increased during the same period.

Since the turn of the year, however, it says the dynamics have shifted as recent developments within the EU provide support to cow prices.

EBLEX says should UK consumers’ budgets allow more spending on prime cuts of beef and sterling remaining strong against the euro, we could see a reduction in demand for cows in the UK.

In contrast, it says cow prices in France for the latest week were 27c/kg less than in the UK, which could lead to an increased demand in this market.

According to EBLEX an increase in trade to France (which is the largest importer and consumer of cow beef in the EU) could also take place amongst other EU member states, whose cows are priced more competitively.