Tight supplies and high demand to 'underpin' beef price - Hanrahan
Tightening supplies of cattle in export markets and higher demand for beef should "underpin" prices to farmers, according to the Irish Farmers' Association (IFA).
The association's livestock chairperson, Declan Hanrahan, said that tighter UK supplies have increased demand for beef there by around 6% compared to last year, with Irish beef best placed to fill this gap.
He said that UK production will be down 5% year-on-year, with most of this evident in the coming months.
He called on beef processors here to take advantage of this in the run up to the lucrative Christmas period.
"It's a similar story in the EU beef market where production is estimated to be down 8%, with some countries down 14%," Hanrahan said.
"This creates further opportunities for Irish beef and for stronger returns to beef farmers.
According to the IFA, prices paid to UK beef farmers increased last week to an equivalent of €7.87/kg for R4 steers, while EU beef prices have risen by 20c/kg since early August.
Hanrahan said that factories must reflect the "improving market conditions" in our markets in the form of higher beef prices.
"Farmers should not be misled by unfounded negativity from factory agents or attempts to lower quotes.
"All factories are having to pay 10c-20c/kg above quotes to secure enough cattle to fill their lucrative orders, with some already starting to plan for the Christmas trade," he said.
The IFA cited data from Bord Bia, which has predicted supplies to be back by almost 100,000 head, forcing factories to compete strongly for what will be available over the coming months.
However, Hanrahan cited concerns over supplies from outside Europe entering the EU and UK markets.
"While market conditions are strong and justify a turnaround in beef prices, the increased access to the UK and EU markets from Australia, New Zealand, Brazil continues to be a concern."
The IFA livestock chair called on Bord Bia and beef processors to challenge these products in Ireland's key markets and to highlight the exacting standards here on welfare, environment and traceability at significantly higher costs.
"We have no influence on trade deals that the UK does, but our government can and must influence trade decisions at EU level and stand firm in support of Irish suckler and beef farmers by protecting the EU beef market from additional South American beef through the Mercosur trade deal," Hanrahan said.
"The government, the Minister for Agriculture Martin Heydon, and our MEPs cannot allow Irish beef and the livelihoods of suckler farmers to be traded off in the Mercosur trade deal," he added.
