Latest figures from Bord Bia indicate that the Irish Composite Beef price is 13c/kg below the export Benchmark Price.
As of Saturday, July 8, the Irish Composite Price was €4.66/kg, while the Export Benchmark Price was €4.79/kg – 13c/kg above the Irish Composite Price.
The Irish Composite Price equates to the average price per kilo paid for all animals slaughtered in Ireland on a weekly basis, based on the percentage of animals in the different categories annually (steers, young bulls, heifers and cows) and the main carcass grades.
Looking at prime cattle alone, the Bord Bia Beef Market Tracker shows that as of July 8, the Prime Irish Composite Price was €4.89/kg while the Prime Export Benchmark price was €4.95/kg, 6c/kg above the Prime Irish Composite price.
The Export Benchmark Price is a market indicator which takes account of the prevailing cattle prices for the different carcass categories and grades across the main export markets for Irish beef.
According to Bord Bia, the Export Benchmark Price is essentially the average price that Irish producers would theoretically receive if their cattle were priced according to the prevailing carcass prices across the primary export markets but does not account for transport costs incurred by Irish beef getting to its destination market.
When the UK market prices are excluded, the Irish Composite Price is 18c/kg above the EU Benchmark Price .
Looking solely at Irish prime cattle prices (steers, heifers and young bulls) versus the Prime EU Benchmark Price (excluding the UK market) The prime Irish Composite Price is €4.89/kg which is 31c/kg above the Prime EU Benchmark Price of €4.58/kg.
Price pulls continue
This week’s factory quotes see price cuts for beef continue, with prime cattle quotes at some sites back by 40c/kg from peak prices in mid-April of this year.
Conversations with procurement bosses would indicate that further beef price reductions are expected over the coming weeks.
While prices are falling, supplies of cattle are remaining relatively steady and supplies of grass cattle are expected to begin increasing further from August onwards.