Factory quotes for beef cattle “are not reflecting the strength of the market in the prices returned to farmers”, according to the Irish Farmers’ Association (IFA) Livestock Committee chairperson, Brendan Golden.
Golden explained that despite beef price rising by a further 5c/kg this week, “it is still lagging behind market returns”.
The Mayo suckler/beef farmer explained: “The latest prime Export Benchmark price has opened up a gap of 17c/kg with the prime Irish price, reflecting the strength of the market for beef.”
According to Bord Bia, the prime Export Benchmark price “is a reflection of the prices being paid for prime cattle of the different carcass categories and grades, and is weighted according to the relative importance of key export markets for Irish beef”.
However, Bord Bia also notes: “The Export Benchmark does not take into account the additional transport costs incurred by Irish beef exports to the UK and continental Europe.”
Brendan Golden said supplies of prime cattle are “extremely tight” and added that last week’s kill of steers came in at just over 13,000 head and the heifer kill dropped by over 800 head on the previous week to just over 10,000.
“Factories are paying €4.25/kg for steers and €4.30/kg for heifers freely this week, with up to €4.40/kg paid for steers and €4.45/kg for heifers as they struggle to get suitable cattle.”
Golden continued: “Cow prices are ranging from €3.50/kg to €4.00/kg depending on grade with young bulls, grading R/U, making €4.20/kg to €4.40/kg.
The IFA’s livestock chair emphasised that “there is no justification for prices lagging behind the Prime Export Benchmark Price by 17c/kg and factories must start returning the full value of the current market in beef prices offered to farmers”.
“Cracks are appearing in the stranglehold factories have had on prices over the past few weeks. Farmers should sell hard in what is a very strong market for beef, with supplies not meeting the lucrative Christmas demand,” he concluded.