June 16, 2022

Increased demand from the UK and EU fuels Irish cattle prices

Despite more Irish cattle on the market in the first quarter of 2022, strong demand from the UK and EU has fuelled Irish cattle prices, the UK Agriculture and Horticulture Development Board reported.

According to data from the Central Statistics Office (CSO) Ireland, cattle slaughter in the country has surpassed that of 2021 in the first four months of 2022. During that time, 607,000 cattle were processed, up 13% from the same period last year.

While both prime cattle and cow slaughter has increased significantly year over year, cow slaughter has been particularly strong. In comparison to 2021, Bord Bia's forecast for all cattle for 2022 has been revised upwards from around +65,000 head to around +105,000 head. This would be about 6% higher than the 2021 kill level.

However, Irish prime cattle numbers are said to be tightening, resulting in increased competition among buyers for available supplies. Indeed, for the first time in many years, the average Irish R3 steer price, as reported by the European Commission, surpassed the overall average GB steer price in the week ending May 28.

Irish cattle are usually sold at a lower price than British cattle. Ireland is a net exporter, and it must compete on price in both the UK and continental Europe. Strong market conditions on the continent and in the UK, as well as robust demand from reopening foodservice sectors in the EU and the UK, are said to be boosting Irish prices.

CSO Ireland data showed Irish fresh and frozen beef exports increased by 41% year on year to 120,000 tonnes in the first quarter of 2022. Increased shipments to the UK, particularly boneless beef to Northern Ireland, accounted for nearly all of the increase.

Ireland also sent more beef to France and Spain, while exports to Hong Kong decreased significantly from the previous year. In comparison to a year ago, production in the EU was relatively flat, but it was significantly lower in key producing countries France and Germany.

-      UK Agriculture and Horticulture Development Board