July 15, 2009

The supply of cheap beef from Ireland is undermining beef prices in the wider EU market, warned the Irish Farmers Association (IFA).

The European beef advisory group predicted a European average price of 342c per kg but prices are falling way below that, said IFA livestock chairman Michael Doran.

The most recent factory quotes range from 308c per kg for U grades and 288c per kg for O grades.

Ireland is exporting so much beef to England that prices there could be undermined, he said.

There is no reason why the prices paid by Irish factories should have fallen so drastically in the past week, said Doran.

IFA said the gap between Irish and British beef prices is now in excess of EUR150 (US$210) per head.

However, Cormac Healy from Meat Industry Ireland (MII), said the prices currently being paid reflected the realities of the market.

Healy said that any hope of a recovery in cattle prices was simply unrealistic.

Irish beef exports are facing a tough challenge as beef consumption in the UK and across Europe is weak and lower than last year, Healy said.

Overall sales are slower and consumers are continuing their move towards purchases of lower-priced beef cuts and mince beef, and prices for young bull beef in Italy and Spain had dropped by eight percent and seven percent, respectively, in the past six weeks, said Healy.

The lower value manufacturing meat market prices have begun to weaken in EU markets while steak prices have peaked for 2009, Healy said, adding that the average value of steak cuts is currently 15 to 20-percent lower than in the same period last year.