Current beef market developments have seen Irish cattle prices strengthen considerably over recent weeks, according to Meat Industry Ireland (MII).
The group has made the comments following the latest Beef Market Taskforce meeting and admits there is a “gap” with UK beef prices.
According to MII, the Department of Agriculture, Food and the Marine’s (DAFM) reported prices for last week show R-grade prime cattle at €4.22/kg – representing a five-year high for this stage of the year.
MII adds that Bord Bia figures show that the Irish composite cattle price is on par with the Export Benchmark Price and “while there is a gap with UK prices, Irish price is actually 30c/kg ahead of the basket of EU member states that take some 45% of our overall beef exports”.
Food service trade and beef prices
In a statement MII adds that “continued strong retail demand is underpinning trade but food service business is only slowly reemerging as Covid-19 lockdown restrictions are tentatively lifted”.
The representative group for the Irish meat sector has emphasised that many EU markets are experiencing rising Covid-19 numbers, which will see restrictions on their hospitality sector in place for some time yet.
The MII statement continues:
“There is a supply / demand dynamic in the British market at present that is driving the domestic British cattle price. GB production is down 2-3% below last year’s levels and demand in British retail for domestic ‘Red Tractor’ British beef has driven price there.
“While retail demand is strong, only three of the top 10 UK retailers stock Irish beef. Not all of our beef goes to the UK and of the beef that does, not all of the cuts go into retail.”
Beef Market Taskforce report
MII has welcomed the latest Grant Thornton draft report which was presented to members of the Beef Market Taskforce.
The group said it “clearly established the value generated by the primary beef processing sector for sales of Irish beef, as well as quantifying the total amount paid to farmer suppliers for finished cattle”.
MII claims that the analysis confirms that farmers receive 80% of the sales revenue processors generate from the sale of beef and beef by-products, a figure disputed by several farming representative organisations.
Senior director at MII, Cormac Healy, said: “Meat Industry Ireland [MII] and its members remain committed to constructive engagement in the beef taskforce process.
“With completion of the various Grant Thornton independent reports, the taskforce needs to engage on some of the key challenges facing our sector, including climate change commitments, post-Brexit trading environment and EU trade deals.”