Factories Have to Step Up on Beef Prices to Secure Supplies

IFA Livestock chair Declan Hanrahan said as beef prices move upwards, factories must do more to keep pace with prices in our key export markets.

“Strong demand and tight beef supplies here and across the EU are driving the trade in the primary markets we export into, but factories are failing to reflect the strength of these markets in prices paid to farmers,” he said.

The latest Bord Bia prime export benchmark price has strengthened again and has now opened a gap of 50c/kg with the Prime Irish Composite price. UK prices are now over €1/kg above ours.

Demand for beef in these markets are very firm in the lead up to Christmas creating strong demand for Irish beef. “Factories are currently filling orders for these markets and with supplies of suitable In-spec cattle tight, prices must move on to reflect the full value of these market to farmers,” he said.

“There is a 5c/10c/kg difference between quoted and paid prices. The price factories are willing to pay is evident in marts where finished and store cattle are freely exceeding what they are offering in most cases,” he said.

Up to €5.30kg and €5.35kg base price has been secured this week for steers and heifers and farmers should not be misled with the lower quotes.

Declan Hanrahan said market conditions justify stronger prices and it’s vital factories move to close the gap with the key markets we are exporting into.