Factories are struggling to secure supplies of cattle at present, which is putting upward pressure on prices paid to farmers, according to the Irish Farmers’ Association (IFA).
Brendan Golden, the association’s livestock chairperson, said this morning (Monday, November 15) that beef prices have started to move upwards, with farmers now securing €4.20/kg for steers, and prices up to €4.30/kg offered for specialist lots.
“Most heifers are now moving at €4.25/kg, with up to €4.35/kg offered at the top end. Cull cows have steadied and are ranging from €3.50/kg to €4.00/kg, depending on grade,” Golden highlighted.
He also noted that prices in the UK have strengthened again and supplies are running 4% below 2020 levels which, he added, is creating strong demand for Irish beef for the lucrative Christmas trade.
Despite the increase, Golden highlighted that Irish prices are “lagging 9c/kg behind the latest prime export benchmark price and must push on”.
“Cattle supplies are predicted to be extremely tight up to year end. Combined with the reduced volumes of beef in the UK and low levels of South American imports in the EU market, this creates a very positive market environment for Irish beef which must be returned to farmers in strong price increases,” the IFA livestock chair stressed.
“Farmers should dig in and sell hard. Factories need cattle to fill lucrative Christmas orders and must return the full value of current strong market conditions,” he concluded.
Last week, a steadying in prices was noted following downward pressure on the preceding two weeks.
Despite the firming up of prices, the discrepancy in what farmers are getting versus what processors are making is still a cause of concern, with the Irish Creamery Milk Suppliers’ Association saying last week that the benefits of the “mini boom” in Irish beef exports to the UK and other markets are “unconvincing”.