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The autumn tussle over beef prices is getting under way, with factories determined to cut and the IFA fighting back.
The IFA claimed that supplies at the meat factories were tighter than anticipated this week and that factories are finding it more difficult to get numbers at the lower quoted prices.
“Last week’s kill was 32,784, up just 1,000 head on the previous week, despite the aggressive price cutting propaganda of the factories to drive out numbers,” IFA livestock chair Angus Woods said.
The factories need all the cattle they can get to meet demand, he said.
“A few weeks ago, when cattle supplies were over 33,000 per week, prices were running at €4.10/€4.20 for steers and heifers. Market demand has not slackened since.”
He said that in Leinster, agents and factories were actively looking for cattle and paying a base of €3.95 to €4.05/kg. Some farmers got as high as €4.15 for heifers this week. “Fine weather today and tomorrow might steady it up a bit more.”
'Inaccurate comments'
Responding, Cormac Healy of MII said the IFA’s comments were inaccurate.
“Market conditions in the beef trade over the last six to eight weeks have put pressure on returns.
“We cannot ignore either the fact that sterling has weakened a further 6% since the beginning of May and the US dollar has fallen in value by 11% in nearly the same period. The dollar weakness is impacting on hide, offal and any international exports of beef that are taking place.”
Exporters wait and see on live cattle to Egypt
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