Market conditions in some of Ireland’s key beef export markets are favourable and justify the stronger prices being offered by processors, one farm organisation has said.
Brendan Golden chair of the Irish Farmers’ Association (IFA) Livestock Committee has said that the balance between supply and demand for beef is improving as supplies in Britain fell by more than 6,819 head within the past week, and prices have increased by 1.4p/kg. He said:
“This strengthens the opportunity for factories to increase prices in this important market and offset the impact of a slightly weaker sterling, which at this point is also showing signs of strengthening.”
According to Golden, Bord Bia projections indicate that demand for forward store and finished cattle for live export to Northern Ireland will increase in the final quarter of this year. Such a rise would add competition to trade in the coming months, he said.
He stated that within the EU, young bull prices have been strong and are currently running 24c/kg above Irish prices on the prime export benchmark tracker.
However, the livestock chairman said the narrative over the past few weeks from factories has not accurately reflected the realities of the market place.
He said there is no justification for a weakening in beef price and added that “attempts by factories to do so is clearly opportunistic when the facts of our key markets are appraised”.
“Factories must return the full value of the market place in beef prices. There is no justification for a gap of over 20c/kg with our main markets.”
He said despite factories offering lower quotes to some farmers, prices of €4.75 to €4.85/kg are still being paid as base prices for steers and heifers, with higher prices available for larger and specialist lots.
Meanwhile, young bulls are making €4.70/kg to €5.00/kg, with the cow trade remaining firm ranging from €4.40/kg to €4.90/kg.