ICMSA remaining bullish in outlook for beef prices

The Chairperson of ICMSA’s Livestock Committee has said that farmers have every right to be upbeat about the outlook for beef over the coming months and that sellers can “hold tough” on the prices being offered.

Michael O’Connell was speaking after the last few weeks have seen factories – in his words – “scrambling” to secure finished cattle.

“Realistically, and certainly over the next period, we see a chance for farmers to hold tough on price, and we’d encourage them to shop around for best price options on in-spec Angus, Hereford, and Friesian cattle with prices up to €5.20 per kilogramme base price for steers and €5.25 to €5.30 or even slightly higher being reported for in-spec heifers,” he said.

“I’d also encourage farmers with finished cattle to consider their local marts as that trade looks particularly attractive, with factory agents looking to buy cattle for slaughter as well as forward stores for further feeding and being bolstered by strong competition from Northern buyers.”

MR O’Connell said that on the basis of the figures, farmers had every right to be upbeat about the trade over the next couple of months, and he said that the factories shouldn’t try to talk the trade down.

“Bord Bia are projecting up to 40,000 less finished cattle this year, and we know that the relatively high numbers of calves and weanlings exported in ’22 and ’23 will feed through into this year,” he said.

“Those increased prices are badly needed; set against the longer housing period and costs incurred through a brutally wet and long winter.

“ICMSA would just say to Bord Bia and everyone else connected with this marketing recognition that it is all for nothing unless the farmers producing the beef see some benefit.

“This cannot and must not be seen as a marketing exercise; this has to have real results for the farmers through real improvement on prices that, for far too long, have languished at whatever level the factories and retailers felt like paying.

“We note Minister McConalogue’s remarks that this awarding of PGI status was a ‘win/win’ scenario. With due respect, that very much remains to be seen.

“The farmers are yet to see any meaningful improvement in their prices, and we should all withhold judgement on this development [until] we see whether the farmers actually benefit.

“Remember that Irish beef exports were worth €2.62billion in 2023 and the PGI status should mean that that could increase if farmers can be persuaded to keep producing quality beef through better prices.”