Rising demand driving quotes up from April rock-bottom

Across the EU April 25 was the nadir for beef prices, according to Bord Bia data.

Driven downwards by the closure of the hospitality and fast-food sectors, the average EU price for R3 steers and bulls bottomed out that week at €3.44/kg. In Ireland the average slumped to €3.40/kg, with R3s in the UK on €3.70/ kg.

By May 30, the average price for R3 steers in Ireland had risen 22c/kg to €3.62/kg, with the UK price up 21c/kg to €3.91/kg. On April 25, the kill here stood at 25,129. By May 31 it was up 5,930 to 31,059.

These figures show that demand for beef from the supermarkets helped balance the loss of those other sectors and then some. How else do you account for the fact that as supplies increased so too has the price?

Granted over the last three weeks bullocks have been fixed up or down a shake at €3.55-3.60/kg, with heifers €3.60-3.65 and €3.70/kg in some cases. Now with Covid restrictions across the continent easing, we can expect a gradual increase in demand.

This is reflected in the fact that after wobbling over the last two weeks cull cow prices appear to be recovering, with better P-grades once again floating around the €2.70-2.75/ kg mark, with O-grades on €2.80-2.85/kg and Rs back up to €3.00-3.10/kg. On the bull side prices seem fixed at €3.55-3.60/kg for U grades, with Rs continuing on €3.50/ kg. However, there has to be a question as to how much longer the supply from the sheds will last.

In March, economist Jim Power released his report ‘An Independent Assessment of the Irish beef industry’. It was commissioned by the IFA, who appear to have little interest in developing the points raised

such as Mr Power’s detailed analysis of US price index legislation relevant to cattle.

Mr Power also highlights the “basic lack of trust… and transparency” in the industry here.

In my opinion the IFA needs to inform itself to a far greater degree if they are to be truly serious about delivering for beef farmers.

Fighting short-term engagements on price isn’t enough.