As beef prices surge why are Irish producers still 5% below European average?

The Chairperson of ICMSA’s Livestock Committee, Des Morrison, has said that “questions need to be asked and answered” around what he described as “the inexplicable deficit” between the rise in European beef prices and those recorded here.

Mr Morrison noted that since the week ending March 12, 2021, the European composite price went from €3.53 per kg to €4.62 per kg and exclusive of VAT representing an increase of 22.9%, whilst the Irish composite price went from €3.57 per kg to €4.45 per kg exclusive of VAT, a significantly lower rate of 17.8% with both recorded over a twelve-month period. The comparison left Irish farmers currently receiving more than 5% below the European benchmark.

“Nor is this inexplicable deficit just confined to European averages or composites. If we look over the border and at the week ending the 12th of March 2022, Irish beef farmers received €4.91 per kg inclusive of VAT for their R3 steers, while just over the border in Northern Ireland the price of R3 steers was €5.18 per kg inclusive of VAT”, said Mr Morrison.

The ICMSA Livestock Committee Chairperson said that the data showed clearly that primary producers outside the Republic of Ireland are receiving more for their product and the question then became why Irish farmers were being short-changed? “Taking into consideration current rampaging input costs, Irish farmers are not making a profit producing beef. How can beef farmers be expected to put cattle into sheds for finishing this coming Autumn? There is no certainty for producers of beef and we predict that this is going to result in sharp supply shortage issues at certain points down the road”, concluded Mr Morrison.