So far this year, finished cattle prices have been 9% higher than the same period in 2022, according to a new report.
Teagasc has today (Tuesday, July 25) published a mid-year assessment of its Situation and Outlook for Irish Agriculture for 2023.
The report forecasts a “positive” outlook for beef prices this year. Irish finished cattle prices are expected to increase by 5% overall this year, relative to 2022.
Weanling and store prices are also forecast to increase by 5% relative to 2022.
The report stated: “For individual farm businesses, the timing of cattle marketing is proving important in 2023.”
Report
The report added that improved prices for beef are supported by higher prices for both pigs and poultry in response to animal disease outbreaks.
UK prices are expected to increase in 2023, according to the report. This is due to the contraction in UK beef supply being ahead of the decline in consumer demand.
While prices increase, Irish production is decreasing. Irish beef production is down 4% so far this year in comparison to last year.
For 2023 as a whole, Irish prime beef production is forecast to decrease by 2% compared to 2022.
Beef production is expected to peak in the third quarter of this year and possibly surpass the levels observed for the same period in recent years, according to the report.
It states that “elevated” feed prices may have delayed cattle finishing on some farms.
EU
EU beef supply declined by 3.7% in the first quarter of 2023.
The supply is expected to be 2% lower in 2023. The report states this is mainly due to a reduction in the size of both the dairy and beef cow herds.
Beef exports are expected to decrease this year by 5% due to more competition in markets and higher EU prices, while imports are expected to increase for the same period.
Total EU domestic use of beef is forecast to be lower in 2023 relative to 2022.
The report outlines that this is due to “high inflation” having a negative impact on consumer demand.
“Low economic growth in the UK impacts negatively on demand for beef,” the report states.