June 28, 2004

New EU States See Beef Prices Rise
 

Beef prices within the 10 new EU member States are rising following their accession to the EU on May 1, a move which is in line with the expectations for the converging of prices.

Significant increases have already been achieved in average cattle prices throughout the new region with particular emphasis on the progress being made in Poland, Czech Republic and Hungary.

Analysis carried out by Bord Bia shows the average price for an R3 male animal in Poland has increased by almost 49% since the beginning of this year, with 30% of that having been gained over the first six weeks of EU membership.

The Polish price for R3 male animals has now increased to 71% of the Irish price with producers being paid 193 cents/kg (69p/lb), an increase of 64 cents/kg (23p/lb) since the beginning of the year.

In the Czech Republic the improvement in prices has not been as pronounced. The average price for R3 male cattle has increased by 11% since the start of the year, bringing the producer price to 216 cents/kg (77p/lb) with six per cent of the increase having come since May 1.

R3 male beef prices are now at 80% of the Irish average with the gain of 21 cents/kg (7p/lb) since the beginning of the year.

Data is not available in Hungary for the period prior to accession. Since joining the EU on May 1, prices have increased by eight per cent to 200 cents/kg (71p/lb) which represents 73% of the Irish price.

Over the medium term, the EU Commission are forecasting that beef self-sufficiency within the new region will continue to decline and should present some opportunities for Irish exports as prices come closer to merging.