Irish cattle prices have continued to perform strongly over the past months. This is according to Peter Duggan, Strategic Information Services of Bord Bia-Irish Food Board.
Trade is being underpinned by tight supplies around Europe, with supplies particularly tight in the UK, he noted.
“Up until the 15th June 2013, the Irish R3 steer averaged around €4.17/kg, an increase of over 6 per cent on previous year levels. This follows three consecutive years of growth in prices, compared to 2010 levels prices are now currently 43 per cent higher. The current Irish R3 steer price is €4.43, which is 10 per cent higher than previous year levels.”
Demand for Irish quality assured beef has strengthened in the UK in particular as some of the main retail outlets are sourcing from just the UK and Ireland to reduce supply chain issues, Bord Bia noted.
The Irish R3 steer price has been trending above the weighted average EU R3 male price since the middle of January.
Currently, the Irish price is 13 per cent above the Europe average and 5 per cent below the UK R3 price (See graph above courtesy of Bord Bia).
However, with some slight recovery of around 1 per cent in beef supplies fore-casted for the UK for the second half of year, this may potentially dampen demand for extra Irish product that will be available, the food agency noted.
“At the moment Irish cattle supplies are running around 56,500 head higher to date this year, with supplies expected to reach around 1.55 million head by the end of the year, which would represent an increase of 150,000 head on last year’s levels,” it added in its latest information update.
Image Limousin heifers on silage. Photo O’Gorman Photography
Graph courtesy Bord Bia