Market Conditions Mean Beef Price Pointing in Only One Direction

IFA Livestock chair Declan Hanrahan said buoyant beef markets must be reflected in beef prices to farmers.

He said the relentless opportunism by meat factories in undermining strong markets will not be tolerated.

“Every week that goes by cattle coming from sheds have incurred higher costs and factories must reflect this in beef prices,” he said.

Declan Hanrahan said in reality factories are very anxious for cattle and are freely paying 10c/kg above quoted prices and looking for cattle for next day processing.

The buoyancy in our key beef markets – the UK and EU – is reflected in the Bord Bia Prime Export Benchmark Price which has now moved to over 6c/kg above ours as beef prices in these markets continue to rise driven by strong demand and tight supplies.

“The roll out of the PGI for Irish Grass Fed Beef in the coming weeks must add additional value to Irish beef.  There is no point in the Minister for Agriculture and Bord Bia talking about the importance of the PGI status in marketing Irish beef if it does not generate a significant return for farmers,” he said.

He said factories and Bord Bia must ensure the additional value associated with beef sold under the Grass Fed PGI transfers directly to the pockets of beef farmers.

Declan Hanrahan said factories must stop the unjustified weakening of beef prices and reflect the full value of strong market conditions that are projected to continue in the coming weeks and months with supplies tightening.

He said factories are paying €5.10/€5.20/kg for steers and heifers this week; €5.10/5.30/kg for R/U grading young bulls; and from €4.00 to €4.80kg for cows, depending on grade.