Cattle prices are slowly increasing due to tight supply, the Irish Farmers' Association (IFA) has said.

IFA livestock chair Declan Hanrahan said factories are struggling to source enough cattle to fill orders and are paying 5c/kg to 10c/kg above quotes to tie down deals this week as desire strengthens.

“The strong demand is also evident at mart sales, where competition has intensified between factory agents and live exporters, with prices paid for suitable factory-fit cattle well above quoted prices,” he said.

Factories under pressure

The reality is that factories are very anxious for cattle, according to the IFA, and they are sourcing cattle for next-day processing and are willing to pay above quotes to secure supplies.

Bord Bia estimates that cattle throughput until the end of the year is expected to reduce by 50,000 to 60,000 head, which will significantly reduce the numbers available to factories in the coming weeks, the IFA said.

Hanrahan feels the upward momentum of prices must continue, as market conditions are justifying it.

“Live export demand for store and finished cattle from live exporters for Northern Ireland and international markets is adding important competition to the trade and will further reduce the number of cattle available to factories.

“Prices in our key exports markets - the UK and EU - are strengthening, which all points to strong and favourable conditions for beef, which must be returned with higher prices," he added.