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Cattle supplies will be tighter than expected, Michael Guinan, chair of ICMSA’s livestock committee, has said.
"Based on Bord Bia’s analysis of the marketplace, the supply of cattle this coming autumn is likely to be less than expected and thus further downward pressures on cattle prices which is not justified may not materialise."
According to the AIMS database, Guinan said, there were 35,000 less male cattle between 24-36 months and 9,000 less female beef cattle in the 24-36 months age category on 1 June 2016 compared to 1 June 2015 and this provides a strong indication that cattle supplies for the rest of 2016 may be tighter than had been previously expected.
Falling prices
"Beef prices have fallen by 37c/kg since this time last year and by 18c/kg year to date," he said.
"This is equivalent to a loss €130 per head compared to this time last year on the average steer and this is before all the different specifications are applied to this animal."
He also explained that, based on the presentation from Bord Bia, the markets for Irish beef remain in a strong position and should the US beef market get up and running this autumn and should progress be made on the Chinese market, the current negative sentiment in relation to beef prices could be reversed.
The livestock committee chair added that the annual campaign by meat processors to cut beef prices at this time of year has started earlier and based on market developments, there is no justification for further reductions.
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