The welcome increase in factory cattle prices in recent weeks is supported by a particularly strong international market for manufacturing beef.

This is taken from the forequarter of the animal and trimmings of hindquarter cuts and is the term given to beef that is used for mince and burgers.

The global market is reflecting a huge drop in Australian exports, particularly to the USA, which are down 40% this year compared with the same period in 2016.

Drought

This is because Australia is restocking following drought and with volumes coming out of New Zealand also lower than expected, there is a shortage of supply in the US market.

This is reflected in the futures cattle price on the Chicago Mercantile Exchange for June, which increased by 20% in April and 40% since last autumn.

The price paid for the equivalent of our R3 steer was €4.37/kg for the week ending 30 April, which is 45c/kg higher than a year ago.

While all categories of manufacturing beef have increased, it is the higher-fat products that have shown the biggest increase compared with a year ago. High-quality (over 90% lean) is currently making the equivalent of €4.25/kg, which is around 10ckg higher than a year ago, while product with a higher fat content (65% lean) is making the equivalent of €2.75/kg, which is 35c/kg higher than a year ago.

Ireland has finally entered the US manufacturing beef market, with the Foyle Food Group landing its first shipment.