Despite strong kills, factories continue to chase cattle. I cannot recall a time when beef prices increased during September and yet we have seen two price increases in recent weeks.
While currency volatility is obviously playing a part, there is something more fundamental at play. Are we seeing an end to seasonality in the Irish market? After all, farmers selling cattle off grass at present are receiving a similar price to those who slaughtered out of the shed last March after a high-cost five-month feeding period.
If we look to our main export markets, seasonality has long disappeared and in fact prices tend to strengthen slightly in the autumn, particularly in continental markets. The trend presents a very real challenge to the industry and once again calls into question whether farmers benefit from producing beef all year round.
As Paul Mooney reports, Teagasc calculates a beef price of €4.45/kg is required for winter finishers to just break even. Add another 30c/kg to get a €100 margin.
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