August 30, 2023

 

Irish Farmers' Association urges prompt update of factory prices in line with rising beef market

 

The Irish Farmers' Association (IFA) has called for factory prices in Ireland to accurately reflect current market trends, which show an upsurge in beef prices, Agriland reported.

 

Brendan Golden, chairman of the IFA Livestock Committee, said that while beef prices have shown signs of improvement this week, the prime Irish composite price lags behind the prime export benchmark price by EUR 0.34/kg (~US$0.37; EUR 1 = US$1.09)

 

Golden underlined the necessity of promptly narrowing this price differential and stressed that the strengthening of prices in key export markets is creating favourable conditions for the Irish beef sector.

 

In the present landscape, most market outlets are quoting prices ranging from EUR 4.65 – EUR 4.70/kg (US$5.06 – US$5.12) on the grid for heifers, while bullocks (steers) are being quoted at EUR 4.60 – EUR 4.65/kg (~US$5.01 – US$5.06) on the grid.

 

For under-24-month R-grade bulls, the quotes stand at EUR 4.70 – EUR 4.80/kg (~US$5.12 – US$5.23), with a EUR 0.10/kg (~US$0.11) premium for bulls grading a U above this.

 

The cow trade remains resilient, with prices spanning from EUR 3.80/kg to EUR 4.90/kg (~US$4.14 – US$5.33).

 

Golden provided insight into the varying market dynamics, noting that conversations with beef industry experts reveal that markets for premium beef cuts, such as steak meat, have stabilised. However, the manufacturing beef cuts utilised for products like meatballs, mince, and burgers present ongoing challenges.

 

He further pointed out the competitiveness of mart outlets, where prices for forward store and finished cattle align closely with factory quotes.

 

As the weather conditions negatively impact grass cattle supplies in the coming weeks, Golden highlighted indications of a subsequent increase in demand from buyers in Northern Ireland for finished cattle as the year progresses.

 

-      Agriland