It’s a springtime price bonanza for farmers as demand soars across the board

Beef breaks the €4/kg barrier, spring lamb hits €8.50/kg and milk price on course for 35c/l

BEEF prices are 60c/kg ahead of this time last year, while lamb prices are up a staggering €2/kg, giving a welcome boost to farmers’ incomes.

Surging market confidence is driving up beef, lamb and milk prices, with dairy farmers calling for a March base milk price of €35c/L after another bounce in milk returns was reported by Ornua.

And resultant farmer buying confidence is driving strong sales of tractors and jeeps, while increased farm construction and improved markets for breeding stock are also reported.

Quotes for heifers rose by 5-10c/kg and bullocks increased by 10-15c/kg in a week when the €4/kg mark was finally breached.

The price rises have been partly attributed to the unwinding of Covid restrictions in the UK.

Base prices for spring lamb and hoggets are already at record levels, with factories paying up to €8/kg plus bonuses for hoggets, and spring lamb hitting €8.50/kg.

Further, the emergence of an export trade for ewes has added fuel to an already ‘on fire’ trade for sheep. Demand for ewes in Britain and the Continent for Ramadan, which started yesterday, resulted in strong buying in western marts last week.

Mart managers reported a lively trade for ewes, with prices topping €1.85/kg and working off of a minimum of €1.20/kg.

And dairy farmers are set for further milk price increases in the coming months on the back of a strong global dairy market.

Buoyant market

IFA dairy chairman Stephen Arthur: said: “The Ornua PPI for March is 112.6. When adjusted to include the Ornua Value Payment, this is the equivalent of 35.9c/L. Processors must match the Ornua PPI this month. Farmers must get their fair share of the buoyant market.”

Glanbia Ireland (GI) will pay a base milk price for March of 34.18 cpl (inc VAT) for creamery milk at 3.6pc fat and 3.3pc protein — up 1.5c/L from the February base price.