Beef Prices Rise as Supplies Tighten – IFA
IFA Livestock Chairman Brendan Golden said factories are losing their grip on beef prices as tight supplies and strong market demand drives the trade on.
He said attempts by some factories last week to hold back on price has backfired and prices have moved on this week.
“Factories are having to pay 10c/kg above quotes to secure enough cattle this week as farmers rightly dig in and demand stronger returns from the market place,” he said.
Despite quotes for steers starting at €5.20/kg, up to €5.30/kg is on offer. Heifers are quoted at €5.25/kg, and deals to €5.35/kg and €5.40/kg are on the table.
Cow prices are ranging from €4.50/kg to €5.00/kg with Young Bulls making €5.20kg to €5.60/kg.
“Beef prices still have a journey to travel to reflect the production costs on farms over the winter months. The increased access to the lucrative Chinese market provides a real opportunity which must be grasped by the factories and Bord Bia,” he said.
He said the target for beef prices as set out by Teagasc on winter finishing budgets must be to bring prices to €6.00/kg to cover costs on beef farms.
The current R 3 steer price is €5.53/kg based on the latest DAFM reported prices, which clearly shows the gap factories must close on beef price.
“Supplies are projected to tighten further over the coming weeks and months. With demand increasing, farmers should dig in and sell hard. Factories need the cattle and they must reflect the realities of costs on our farms in higher beef prices,” he concluded.