How has Irish factory beef price surpassed lamb prices in cases?
The past few weeks have seen several cases where the factory price per kilo paid for prime cattle surpassed the price paid per kilo for lamb - a situation most industry sources would agree has rarely if ever occurred before.
Official quotes for the week ending Sunday, November 9, show lamb prices at approximately €7.70/kg, with industry sources informing Agriland top prices of €8/kg are being achieved in some cases for certain specification lambs this week.
An in-spec 'R+3+' heifer is coming in at €7.96/kg in many cases this week before any breed bonus is taken into account. Assuming this heifer qualified for a 20c/kg Angus bonus, the price would be at €8.16/kg.
Some farmers are achieving flat prices above these levels - for specific types of cattle - in cases.
Agriland put the question to Bord Bia on how prime beef prices are currently managing to surpass lamb prices in some cases.
Manager for sheep meat and livestock at Bord Bia, Seamus McMenamin gave an explanation on the current situation from an industry perspective.
He said: "The current deadweight beef trade remains strong and is driven by very tight supplies of cattle for processing combined with relatively stable demand for beef from key customers in the UK and mainland Europe.
"It is worth noting however that while overall demand for beef is being described as 'stable', there has been a notable shift in the type of beef being purchased across these markets, with a growing preference amongst customers and consumers for more lower-value and versatile beef options."
Commenting on the lamb trade, McMenamin said: "Lamb supplies have also remained tight, with throughput in recent weeks running notably lower than previous years.
"A combination of reductions in the ewe flock and reduced levels of import for processing are contributing to this trend.
"However, while beef has benefitted from stable demand for beef, albeit in more versatile formats, the same has not happened for lamb, with consumption continuing to come under pressure across key export markets.
"A more balanced supply/demand dynamic for lamb relative to beef combined with less opportunity for switching to cheaper cuts within the lamb category have contributed to the differing market dynamics."
The Bord Bia sector manager said the combination of the factors above have seen the beef price per kg surpass the lamb price in some instances.
"With some stability expected for both sectors and a relatively tight supply outlook for beef in particular, this trend is likely to continue in the short-term since the market drivers for either sector operate quite independently of one another," McMenamin added.
