Capacity for Further Increases in Beef Price

IFA Livestock Chair Declan Hanrahan said supplies of beef cannot meet demand in the UK and across the EU, driving beef prices in these key outlets for Irish beef.

Prices in these markets continue to strengthen week on week, keeping the Prime Export Benchmark price above our prices and providing the capacity for further strengthening of prices here.

“The main driver of the trade is the UK, where beef prices rose by over 60c/kg since the beginning of the year and by almost 18c/kg in the past week, pushing prices to over €1/kg above our price.”

He said the strength of the UK market in particular shows the scope for further significant increases here and the opportunity for factories to return higher prices to farmers.

“Factories simply can’t get enough cattle to fill the demand and are freely doing deals 20c/kg and more above initial quotes to close out deals.”

Declan Hanrahan said prices are continuing to rise in our key markets. Supplies of cattle are not available in the UK, EU or Ireland to meet the level of demand for beef and factories have no choice but to compete for the supplies on offer to retain customers.

He said it is important farmers are fully aware of the strength of the marketplace and shop around to get the best price as prices are rising almost daily.

“€7/kg base is now the target for beef farmers with some larger suppliers already closing out deals at this price. With UK prices the equivalent of €7.63/kg, there is plenty of capacity in the marketplace,” he said.

Cull cow prices in the UK rose by 18 c/kg over the last week, reflecting the extent of demand for beef. R grade cows are now the equivalent of €6.07/kg. Factories here are paying €6/kg for top-quality cows and with the scale of the demand for processing beef, these prices can be built on for all cows.

R and U grading young bulls are making €6.40 to €6.70/kg with larger suppliers coming in above these prices.