The prime cattle trade remains very firm this week with some smaller processors having to increase quotes to secure supplies.

Bullocks are still being quoted at €4.10/kg to €4.15/kg, while heifers are working off €4.15/kg to €4.20/kg.

Foyle Meats has moved to a €4.25/kg base price for 300kg to 380kg carcase weight heifers.

Larger feeders have been very active in marts over the last two weeks buying forward store cattle to underpin supply to processors for the next two months.

All the market sentiment at the moment is that prices will increase further as cattle numbers remain tight for the rest of the year. Prices have also got firmer in Northern Ireland with £4/kg (€4.91/kg) being paid this week by processors to secure loads of cattle.

Brazilian beef price

Nowhere is this more evident than in Brazil. At the beginning of June 2020, the Brazilian beef price was BRL 12.73/kg, which was the equivalent of €2.27/kg.

This week, it has increased to BRL 20.40 which is the equivalent of €3.32/kg, €1.05/kg more than this time last year.

The Brazilian currency has been declining in value against the euro in recent years, though it has recovered some of this loss in recent weeks.

With this level of increase in Brazil and Argentina out of the market at present due to an export ban on beef, there will be no cheap South American beef entering the EU market this summer.

This imported product would have traditionally headed to the food service trade and if there is a surge in demand across Europe as the food service trade reopens, it will most likely be filled from within, which is good news for Irish farmers.