IFA National Livestock Chairman Angus Woods said the positive change in sterling from 92p back to 88p must be reflected in stronger cattle prices back to farmers.
He said that when sterling went the other way every factory and agent used it as the excuse to pull prices and it is of critical importance that the market is now seen to be working.
Angus Woods said each 1p move is worth 3c/kg, taking account of the volumes that go into the very strong UK market.
Angus Woods said the base price for steers is €3.80/kg and €3.90/kg for heifers. He said some factories are quoting less but having to pay above quotes to get stock. In addition, he said base prices of €3.85 and €3.95 have been offered to get stock.
The IFA livestock leader said demand in the market is strong with a very strong demand for manufacturing beef. He said the kill is in the 35/36,000 head per week range and it is clear factories are very anxious for stock. Last week’s kill was 36,112.
Angus Woods said cattle prices in our main export market in the UK remains very strong. R3 grade steers in the UK are making £3.84/kg which is the equivalent of €4.60/kg including VAT.