Factory agents are scrambling for beef cattle this week, with the plants enjoying very strong export demand but having empty cold stores. As a result, beef prices continue to creep upwards for steers, heifers and cows. Last week’s cow kill reached 10,200 – a level not seen in a decade – without weakening prices.
The trade is benefiting from strong international demand for EU and Irish manufacturing beef, a collapse in production in other major beef countries and rising pigmeat prices.
Exports of EU beef have risen sharply in the first quarter of 2017.
Exports from the EU 28 were 175,000t, a jump of 30,000t on the last year. But beef production in the EU is back by approximately 0.5% and imports of beef and veal into the EU in the period were static at 75,000t.
The UK steak meat market is very strong, boosting demand for Irish product.
There is good demand for Irish beef on Asian markets, particularly the Philippines. Japan and South Korea are importing increased volumes of beef.
Global exports
Exports of beef in other production powerhouses have fallen.
In the first quarter of 2017, Australian beef exports were down 50,000t, while Brazil’s beef production was down 25,000t.
Pigmeat prices have been rising on international markets for the past six months and this is causing some retailers to make the switch over to beef.
Here, farmers with numbers of cattle to sell are starting to ask for a base of €4.20/kg for steers and €4.30/kg for heifers.
Cows are fetching up to €3.45/kg for P grades and up to €3.50/kg for O grades.
The gap between Irish and UK factory prices is now 14c/kg on R3 steers, the lowest it has been since 2012. Irish prices also compare favourably with those in the rest of the eurozone.