The latest increase to beef prices paid to farmers “still doesn’t close the gap” on the Bord Bia prime export benchmark price, according to the Irish Farmers’ Association (IFA).
Brendan Golden, the association’s national livestock chairperson, called on beef processors to maintain the upward price trend.
Beef prices have risen 10c/kg this week on the back of tight suppliers and strong market demand.
“Price in our key export markets, including the UK, are favourable, creating strong demand for Irish beef in the lead up to the Christmas trade.”
“Factories must maintain this upward trajectory of prices and close the gap with the Bord Bia prime export benchmark price, which now sites 30c/kg above the prime Irish composite price,” Golden said.
“This gap is unacceptable and it is clear factories are not paying what the market justifies, which further erodes beef farmers’ incomes,” he added.
According to Golden, anger among farmers is growing at what he described as “the behaviour of factories in holding back on price”.
“Factories and retailers are acutely aware of the production costs beef farmers are exposed to and must return higher prices that reflect the current market situation and finishing costs on beef farms.”
Exports to the UK have increased significantly this year, but, according to the IFA livestock chairperson, factories are not returning the value of this increase to farmers.
Golden said that base prices for steers and heifers are now making between €4.65kg and €4.80kg with higher prices for larger and specialised lots.
“There is up to 10c/kg – 15c/kg of a difference between quoted and paid prices, with very few farmers accepting the lower quotes by factories,” he added.
Grass-fed beef PGI
In other beef news, Ireland is to get protected geographical indication (PGI) status for ‘Irish Grass Fed Beef’.
The European Commission has confirmed to Agriland that the opposition phase of the PGI application process ended 10 days ago.
“Given the absence of opposition, we are proceeding with the adoption procedure,” a spokesperson has confirmed today (Wednesday, November 15).
A monitoring group is set to be established for the PGI status for ‘Irish Grass Fed Beef’, the Department of Agriculture, Food and the Marine has said.
The department will engage with Bord Bia to establish a monitoring group in anticipation of the conclusion of the process.