The Irish Farmers’ Association (IFA) has said that market conditions favour a stronger beef price than is currently being offered to farmers.
It pointed to prices in key Irish export markets stablising, and in some cases strengthening, coupled with tighter suppliers of finished cattle leading to increased demand from factories.
So far this year almost 998,000 cattle have been processed, an increase of over 89,000 head or 10% from the same period in 2021.
Prime cattle throughput has increased by 45,677 head with cow throughput increasing by 34,122 head.
IFA National Livestock chair Brendan Golden said that cattle supplies off grass are expected to remain steady.
He added that with cattle throughput operating very strongly in Northern Ireland, there is an expected increase in demand for exports of forward store and finished cattle as the year progresses.
The IFA chair said that there is room for stronger beef price returns in the marketplace with the Irish Prime Composite Price at €4.82/kg now a full 19c/kg below the Prime Export Benchmark Price of €5.01/kg.
Golden said that attempts by factories to reduce quotes further last week did not succeed and as the week progressed prices offered to secure cattle increased.
“€4.90/kg and €5.00/kg has been offered to secure steers and heifers, with higher prices for larger and specialist lots despite lower quotes,” he said.
“Demand for cows is strong; P grades are starting at €4.40/kg, O grades at €4.60/kg with R/U grades making €4.80/kg to €5.00/kg. R/U grading young bulls are making €4.80/kg to €5.00/kg.”
Golden also said that the live export trade has performed well so far this year, with cattle exports 13% ahead of 2021 levels.
There were 215,539 cattle exported from Ireland up to the week ending July 10.
The IFA National Livestock chair said that exports of weanlings are ahead of previous years, driven by the increase in cattle being exported to third country markets and also some increase to customers in the EU.
Golden said it is vital for competition in the weanling market that the strong exporter activity continues into peak weanling sales and factory prices are strong to maximise competition between finishers and exporters for weanlings.