Back in November the beef price gap between Ireland and Britain had reached €1.20c/kg. By last week, that had decreased to 43c/kg, still well ahead of the 27c/kg published by the IFA as the 10-year average, but a dramatic closing none the less. Back in November it would have been impossible to imagine this reduction in the gap without some lift in Irish cattle prices.
Back in November the beef price gap between Ireland and Britain had reached €1.20c/kg. By last week, that had decreased to 43c/kg, still well ahead of the 27c/kg published by the IFA as the 10-year average, but a dramatic closing none the less.
Back in November it would have been impossible to imagine this reduction in the gap without some lift in Irish cattle prices.
However, farmers haven’t benefited by a single cent as Irish farmgate prices have flatlined since November. The reduction in the British price is driven by the strengthening of the euro by 10-12%, the Brexit vote no doubt contributing to this, and a steady decline in British prices which began in October and has more or less continued weekly since.
The top paying end of the British beef market is driven by the supermarkets, the big buyers of roasts, steaks and minces, while the large burger chains buy forequarter and flank meat.
The overall average price reported for Britain historically masked quite a spread from Scotland to the south of England. Northern Ireland price reports to the EU separately but if it is included it is historically the UK’s lowest price region while Scotland is the highest. Back in July 2014, Scotland’s R3 steer price was £3.46/kg compared with £3.33/kg in the North of England, £3.27 in the English midlands and Wales, and £3.18/kg in the south of England. Northern Ireland was at £3.24/kg.
This is a subscriber-only article
SHARING OPTIONS: