Beef Price Reality Exposes Gameplaying by Factory Agents
IFA Livestock Chair Declan Hanrahan said factory agents should cop on and stop trying to distort the public commentary on beef prices.
“It is obvious they are using quoted prices to undermine farmer confidence, but yet they are prepared to pay for cattle when pushed,” he said.
Prices for cattle have remained very resilient, coming in at just under €7/kg for R3 steers since the 4th April and holding this price right up to the 9th May, which is the latest reported price. This clearly showing the negativity put around by some factories and their agents on quoted prices is not reflective of actual prices paid.
Declan Hanrahan said market conditions for beef are expected to improve over the coming weeks as supplies tighten and demand increases for the summer, in particular for steak cuts which will be further helped by the upcoming World Cup.
“Factories and their agents have spent the last month talking down the trade and undermining farmers’ confidence despite continuing to process around 30,000 cattle a week.”
He said the clear message for farmers is to push back strongly on the negativity put forward by factory agents and sell hard.
“Most shed cattle have moved at this stage and factories will have to work hard to secure supplies to meet the expected increase in demand for beef that is anticipated to materialise over the coming weeks.”
“The impact of cheaper southern hemisphere beef in our key markets will diminish as increased demand for beef in the US should see a lot of this product diverted to that market for the summer months. This will help the trade here,” he concluded.
