Factories cut beef prices after heavy rain

Meat factories are making a serious effort this week to lower beef prices for the autumn, cutting quotes to €3.85/kg for steers and €3.95/kg for heifers.

To apply future pressure on finishers, they are warning that prices could fall another 5c next week. The move comes after heavy rain left some farmers looking at sodden fields.

But factories are keen to get stock. Some independent plants are quoting 3c/kg to 5c/kg more or giving an allowances on transport.

Factories are also trying to cut cow prices, offering €3.20/kg to €3.25 for P+3 grades and €3.30/kg to €3.35 for O grades. Plants most active in the cow trade continue to pay above the general quotes. There is a big variation in bull prices between farmers selling small numbers and bigger, specialist finishers.

In more positive news, Chinese veterinary inspectors are due to arrive here next week to approve Irish factories for supply of beef to that big market. This will be the final step in getting Irish beef into China.

China has the potential to very quickly become as important an outlet for Irish beef as France, currently the next most important market after the UK.

IFA president Joe Healy said beef price cuts at the meat factories must stop, as they are squeezing out any chance of profit for farmers this year from grazing cattle.

“Cuts are not justified by market returns. Prices in the UK are equivalent to €4.42/kg. There is no beef in stock. EU and international markets are stronger than last year and hide and offal returns are also higher.”

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