Beef prices down 40c/kg on five-year average

The scale of losses faced by beef finishers has escalated in recent weeks.

Irish Farmers Journal analysis of official prices reported by the Department of Agriculture shows the average base grade for steers and heifers falling by 25c/kg over the last four weeks.

This equates to a drop of €90 per head on a typical 360kg steer carcase and €80 per head on a 330kg heifer carcase.

Analysis of prices for the last five years shows prices running 40c/kg lower or €144 per head and €132 per head on the same weight carcases respectively.

This also fails to take into account that for the last five years, prices increased by 10c/kg to 20c/kg in the period from mid-April through to mid-May. This looks extremely unlikely this year.

Bull beef finishers who normally target this period for trading stock are facing an even bleaker outlook.

Prices for R and U grading bulls have reduced by 20c/kg to 25c/kg in the last four weeks or in the region of €80 to €100 on bulls weighing 400kg carcase weight.

Producers with heavier bulls are being hit harder, with prices back upwards of €150 per head along with significant challenges in getting bulls accepted for slaughter.

When compared to recent years, bull prices are running as much as 50c/kg lower or as much as €200 on bulls weighing in excess of 400kg. Again, these bulls under 16 months were prioritised from now onwards and also availed of an upturn in market prices.

In the absence of any price recovery, specialist finishers could be facing losses as high as 60c/kg to 70c/kg or from €240 to €280 on a 400kg carcase.