The Irish Creamery Milk Suppliers’ Association (ICMSA) has said that a 50c/kg ‘negative turnaround’ in prices for R3 cattle “warrants some kind of explanation”.
The chairperson of the association’s Livestock Committee, Des Morrison, said farmers have seen a 50c/kg swing in terms of prices for this grade compared to the European average up to the beginning of May.
According to Morrison, prime Irish R3 cattle were seeing prices of 27c/kg above the European average at the end of April 2021.
However, these same Irish animals are now 24c/kg below the EU price just over one year later.
Speaking today (Friday, May 6), Morrison said the negative turnaround amounted to approximately 50c/kg and “certainly warranted some kind of explanation”.
“It’s a matter of record that the average prices recorded for R3 prime male cattle in the EU as of April 30 was €5.14/kg, excluding VAT, while the Irish price for the same class animal [at the same time] was €4.90/kg, excluding VAT,” he noted.
The ICMSA livestock chair argued: “Even the current price gap is mysterious. It certainly doesn’t cost 24c/kg to export into the beef market.
“In other EU countries, such as Germany, the average price paid for R3 steers as of April 30 was €5.64/kg, another 50c/kg above the price we are getting here.
“What’s going on and why can’t Irish producers get even the EU average,” Morrison asked.
ICMSA calling for 50c/L for milk
On the milk price front, the association’s dairy chair is predicting base milk prices to break the “historic” 50c/L barrier for this year’s peak production months.
Speaking in advance of price announcements by processors for April supplies, Noel Murphy said that milk price has hit record levels each month this year due to the “continuing surge in dairy markets”.
“The wholesale market for milk continues to return prices in excess of 60c/L after processing costs despite the levelling of demand for products in the last number of weeks,” Murphy said today.