The Irish Farmers’ Association (IFA) Livestock Committee chair has said that beef prices have “edged upwards” as supplies tighten on the ground.
Declan Hanrahan said factories are struggling to source enough cattle to fill orders.
As a result, he said they are paying farmers 5c/kg to 10c/kg above quotes to tie down deals this week as demand strengthens.
Beef prices
Hanrahan said that “the reality is factories are very anxious for cattle and are sourcing cattle for next day processing and are willing to pay above quotes to secure supplies”.
He added that Bord Bia estimates that cattle throughput between now and year end is expected to reduce by 50,000-60,000 head “which will significantly reduce the numbers available to factories in the coming weeks”.
“Live export demand for store and finished cattle from live exporters for Northern Ireland and international markets is adding important competition to the trade and will further reduce the number of cattle available to factories.
“Prices in our key exports markets – the UK and EU – are strengthening which all points to strong and favourable conditions for beef which must be returned with higher prices,” he said.
The IFA Livestock chair said market conditions justify further beef price increases and it is important the upward momentum continues.
“The strong demand is also evident at mart sales where competition has intensified between factory agents and live exporters with prices paid for suitable factory fit cattle well above quoted prices,” he added.