IFA National Livestock Committee Chairman Michael Doran said beef factories and retailers must increase cattle prices to reflect the significant increase in the costs of beef production this spring.
Michael Doran said Teagasc has calculated that production costs are up 11% driven by higher feed, fertiliser and fuel costs. This is equivalent to an additional cost of 32c/kg and prices must increase to cover this.
Michael Doran said beef prices have been stuck in a vice since the New Year and with costs rocketing, prices must now rise to take winter finishers out of a loss making situation.
Michael Doran said there was significant potential in the market for prices to increase with Bord Bia reporting prices in the UK at the equivalent of €3.48/kg for R grade steers. He said R grade young bulls in France are making the equivalent of €3.57/kg, €3.82/kg in Germany and €4.00/kg in Italy.
Michael Doran said IFA is working with Bord Bia on a new steak promotional campaign for the domestic market for the end of March.
On prices, the IFA man said factories are paying up to €3.36/kg base price for steers, €3.40 to €3.50/kg base prices for heifers and bulls. He said cows are making from €2.94 to €3.10/kg. “The big factory groups are trying to halt the base price at €3.30/kg but farmers are digging in and getting up to €3.36/kg for steers and €3.50/kg for heifers and bulls.”