Opportunity for Further Significant Beef Price Increases – IFA

IFA Livestock Chair Declan Hanrahan said shortage of beef across all of our key markets is creating the opportunity for further significant price increases.
He said R grading steers in the UK are making the equivalent of €7.06/kg in latest reports and rising as supplies fail to meet demand.
Declan Hanrahan said it is a similar story in our other key market, the EU, where a diminishing beef herd is impacting supplies of beef.
The IFA Livestock Chair said Bord Bia predictions for year the year ahead are for a positive beef market with supplies remaining tight both here and in our key markets.
Predictions are for 87,000 fewer cattle to be available for processing here and when combined with an expected continuation of strong export demand for weanlings, store and finished cattle factories will be under pressure to fill lucrative contracts.
Declan Hanrahan said beef prices have risen again this week. Base prices of €6.00/kg are now on the table and flat prices of €6.45/kg have been offered by factories trying to source supplies.
He said demand for cow beef is extremely strong. Prices are starting at €5.30/kg for larger numbers of P grade cows with top quality cull cows pushing to €5.70/kg and above in cases.
The IFA Livestock Chair said numbers of beef cattle are expected to be lowest for the first half of the year which creates real opportunity for prices to rise further and close the gap with the UK price.
He said farmers should be aware of the strength of demand for beef and the capacity in the market place for further beef price rises.
Declan Hanrahan said farmers with cattle to sell should not be misled by some factories offering quotes well below what is available, shop around and sell hard is vital to force factories to close the gap with the UK price, factories need the cattle and they will have to move to the reality of the market place to get them.