“Beef farmers are in the process of making key decisions on finishing cattle for the coming months, and cannot be expected to take on this risk in the absence of minimum-price guarantees from factories.”
This is the belief of Irish Farmers’ Association’s (IFA’s) livestock chair Brendan Golden, who added: “Beef finishers need minimum-price guarantees from factories for the coming months and into next spring.
“Clear direction is needed from factories on price if we are to protect our now well-established, consistent, year-round supplies of cattle.”
Golden said market conditions for beef “are strong and stable”.
“UK prices have started to increase again and prices in the EU remain significantly above ours,” he said.
“The most recent Prime Export Benchmark price is running 12c/kg above Irish prices and when compared with the EU market alone the differential is greater, resting at 18c/kg above our price.
Finished cattle supplies
Supplies of finished cattle to date are almost 90,000 head up on last year, with numbers for the year projected to be 110,000-120,000 stronger.
Live exports are performing well, with demand for the heavy cattle improving from customers in Northern Ireland over the past few weeks.
“Demand is expected to grow from northern customers for forward store and finished cattle as we move into the back-end of the year. Weanling exports are also performing well,” Golden said.
He added that there is capacity in the marketplace for stronger beef prices and said “factories must start reflecting this to close the gap with prices in our key export markets”.
He said factory prices this week are “showing signs of strengthening”. Steers are making €4.80-5.00/kg base price, heifers are making €4.85-5.05/kg with higher prices for larger and specialist lots.
Young bulls are making €4.80-5.00/kg for R/U grades, with P grade cows starting at €4.50/kg and making up to €5.00/kg for top-quality U-grade cows.