Processors have been told that they “can and must do more” for farmers in closing the gap between beef prices paid to farmers in Ireland and farmers in the UK.
Declan Hanrahan, the livestock chairperson of the Irish Farmers’ Association (IFA), claimed that factories are attempting to “undermine” beef prices.
According to Hanrahan, demand for beef is expected to pick up over the summer months in key markets against a backdrop of tighter supplies of cattle.
He said that UK production is predicted to tighten considerably as the year progresses, with prices remaining strong. UK beef prices are around 60c/kg above prices paid to Irish farmers.
“This gap in prices with our most important market is not acceptable and must be closed. Volumes of beef sold into this market increased significantly in 2023 and grew a further 25% earlier this year, which must be reflected in beef prices to farmers,” Hanrahan said.
“EU beef production fell by 3.9% in 2023, with a further reduction of 2.3% predicted for the year. Consumption levels of beef are reasonably stable,” he added.
“If Bord Bia calculations are correct, supplies of cattle here are projected to be back between now and year-end by up to 60,000 head,” the IFA livestock chair said.
“All of this points to strong and favorable conditions for beef, which must be returned to farmers by factories in higher prices.
“Farmers should sell hard and ignore the unfounded negativity on beef prices from factories and their agents,” he commented.
Beef prices
This week’s factory quotes see some beef processors moving to reduce their price offering for cattle with some level of pressure on beef price.
Despite this, some outlets in the northern half of the country have held their price quotes at the same level as last week.
Cattle which are booked in from last week will manage to secure last week’s prices but price quotes are opening at 5c/kg lower for cattle booked in to most sites this week.
Some level of pressure was seen on supplies of certain specifications of prime cattle in June, which resulted in a supply-led price increase, but it seems this is less available this week.