Irish beef prices continue to improve as strong demand sees factories go head to head for smaller numbers of cattle.

Prices are up 80c/kg, or €280/head, on this time last year. A beef price of €5/kg is now on the horizon. The last time this was achieved was in June 2013.

Prices of €4.85/kg have been paid this week for Aberdeen Angus heifers. Strong prices are also being reported across international markets.

Meanwhile, European beef production is forecast to be down by 2%, with UK production expected to be down 5%

Rising demand from China, coupled with declining production in the main beef-exporting countries, is fuelling the increase.

EU imports of beef were down 10% for the first four months of 2021, with Brazilian imports down 7% and Argentinian imports down 22%.

Meanwhile, European beef production is forecast to be down by 2%, with UK production expected to be down 5%.

This, coupled with a 7% hike in UK retail demand and a recovering food service demand across Europe, is pushing prices up.

We are seeing growing confidence of both an economic and food service recovery

Speaking to the Irish Farmers Journal, Bord Bia’s Joe Burke said: “Irish and European cattle supplies will remain relatively tight for the rest of 2021.

“We are seeing growing confidence of both an economic and food service recovery, which should help to underpin demand for Irish beef across our key markets in the next six months.”

The Irish cattle kill is forecast to contract by 110,000 head or 6.2% this year.