Factory prices must move forward to reflect the current market, which shows increased beef prices, according to Irish Farmers’ Association (IFA).
IFA Livestock Committee chair, Brendan Golden said despite firmer prices this week, the prime Irish composite price lags 34c/kg behind the prime export benchmark price.
He said the price differential must be closed “immediately” and that prices in key export markets are strengthening, “creating favourable conditions” for Irish beef.
Most outlets are quoting €4.65-4.70/kg on the grid this week for heifers. Bullocks (steers) are being quoted at €4.60-4.65/kg on the grid.
Batches of well-fleshed, in-spec R- and U-grade heifers or steers with a carcass weight of between 300kg and 400kg are in high demand.
Under-24-month R-grade bulls are being quoted at €4.70-4.80/kg with bulls grading a U being quoted at 10c/kg above this.
The cow trade remains firm with prices ranging from €3.80/kg to €4.90/kg.
Factory prices
Golden said that conversations with beef industry personnel would indicate that markets for the higher-value beef cuts, such as steak meat, have “stabilised”, while the manufacturing beef cuts that are used for products such as meatballs, mince and burgers remain more difficult.
Golden advised farmers to strongly resist any attempts by factories to buy cattle at lower quotes.
He said to consider the mart outlet, where prices for forward store and finished cattle are proving competitive with factory quotes.
Golden said there are indications of tighter grass cattle supplies in the coming weeks due to poor weather conditions, and demand is expected to increase from Northern Ireland buyers for finished cattle as the year progresses.