Ample opportunity to pay beef farmers more

ALL the market factors suggest factories should be able to pay more to farmers selling finished cattle.

That’s according to IFA National Livestock Chairman Brendan Golden, who feels farmers can demand better prices for their beef.

Mr Golden’s comments were based on major price increases in the UK. There’s been a 40-cent-per-kilogramme rise in cattle prices across the Irish sea since late April, significantly ahead of rises in Ireland, where prices have increased by just 22 cents per kilogramme during the same time period.

“The beef market in the UK, where we export most of our beef, is rising rapidly week on week while our prices are struggling to move on,” Mr Golden added.

UK cattle prices rose by another 5.5 cents per kilogramme during the week ending June 13, and the UK steer price is the equivalent of €4.27 per kilogramme ( VAT inclusive). This is almost 50 cents more per kilo than the Irish price, and the average price difference between an Irish and UK steer is €165.

Mr Golden added that cattle prices throughout the EU’s main markets are also recovering, with the easing of COVID-19 restrictions having a positive effect on retail sales.

“Factories agents and procurement managers are very active buying finished cattle in the marts and online, and paying prices that are significantly above their quoted prices,” Mr Golden said.

“In addition, Northern factories are very active, paying prices from 10 to 20c per kg above Irish prices.”

Mr Golden also pointed out that Department of Agriculture data for the beginning of April showed a reduction of more than 100,000 in the number of beef cattle in the 12-24-month category, suggesting supplies in the coming months will be far tighter than in 2019.

Beef sales for the past three months are also up 17.4 per cent on the same time last year. Even stronger increases in terms of sales and value sales have been recorded in the UK.