Market Conditions Justify Increase in Beef Price
IFA Livestock Chairman Brendan Golden said factories here must reflect the strong market conditions in the UK for beef.
He said over the past two weeks, prices in the UK have stabilised and started to rise in response to the demand for beef in our main export market.
Currently the equivalent vat inclusive price for R3 steers in the UK is €4.34/kg, which is 53c/kg above the €3.81/kg paid for the same grade here. This is a differential of €190 in a 360 kg carcase.
Brendan Golden said cattle supplies for the remainder of the year are predicted to be tight. Slaughterings to-date are up 47,651 head in total compared to this time last year.
“The predicted kill for 2020 is similar to last year, leaving 50,000 fewer cattle to be killed between now and year end, compared to 2019,” he said.
The IFA Livestock Chairman said beef sales have performed well in the UK over the summer months and demand should strengthen further as buying for the Christmas trade starts.
He said significant price increases are justified based on the current market conditions and supplies of cattle that will be available and factories must reflect this in prices paid to farmers.