Factory agents are “having to work hard to secure supplies” – and farmers “should not accept lower quotes offered”, the Irish Farmers’ Association (IFA) says.
IFA Livestock Committee chairman Brendan Golden highlighted that beef prices in these markets have strengthened over the past week, rising 3c/kg in the UK.
Golden said demand from supermarkets is strong and cattle numbers are tight, adding:
“There is no hiding place for factories. Prices must push on to reflect the demand for beef in the UK and EU markets.
The Export Benchmark Price, pointed to by the IFA as the “reality of the market place”, shows prices in key markets “reflecting the demand for beef by increasing each week”, the organisation maintains.
Continuing, Golden said: “Factories and their agents are having to work hard to secure supplies and farmers should not accept lower quotes offered.”
Continuing, the chairman said: “Cattle finishers are experiencing continual increases in production costs and the undermining of the market by factories is not acceptable.
“The gradual reopening of the food service sector will drive demand in addition to the seasonal increase for beef for the Easter holiday which is approaching,” he said.
Golden said farmers understand the issues with Brexit and Covid-19. However, this is no excuse for factories failing to reflect the current market conditions in beef prices, he added.
The chairman said the breakeven price for finishers according to Teagasc is €4.50/kg – current prices are a long way off this and market conditions justify a closing of this gap, the chairman concluded.