The relentless opportunism by meat factories in undermining strong markets will not be tolerated, Irish Farmers' Association (IFA) livestock chair Declan Hanrahan has said.

Buoyant beef markets must be reflected in beef prices to farmers, he added.

“Every week that goes by, cattle coming from sheds have incurred higher costs and factories must reflect this in beef prices,” he said.

Hanrahan said that, in reality, factories are very anxious for cattle, are freely paying 10c/kg above quoted prices and are looking for cattle for next-day processing.

The buoyancy in our key beef markets - the UK and EU - is reflected in the Bord Bia prime export benchmark price, which has now moved to over 6c/kg above ours, as beef prices in these markets continue to rise driven by strong demand and tight supplies, he said.

PGI roll-out

He said that the roll out of protected geographical indication (PGI) for Irish Grass-Fed Beef must be of benefit to the farmer.

“There is no point in the Minister for Agriculture and Bord Bia talking about the importance of the PGI status in marketing Irish beef if it does not generate a significant return for farmers,” he said.

He called on factories and Bord Bia to ensure that the additional value associated with beef sold under the PGI transfers directly to farmers' pockets.

Hanrahan said factories must reflect the strong market, which is predicted to continue in the coming weeks and months due to tighter supplies.

He said factories are paying €5.10/kg to €5.20/kg for steers and heifers this week, €5.10/kg to €5.30/kg for R and U grading young bulls and from €4.00/kg to €4.80/kg for cows, depending on grade.

Sheep prices

Meanwhile, the IFA said demand for sheepmeat is intensifying every week against a backdrop of tight supplies.

Adrian Gallagher of the IFA said factories are struggling to match supplies with demand for the upcoming Easter and Ramadan festivals, which are major annual events for sheepmeat demand.

Both festivals falling in the month of March has increased pressure on factories to service key customers in the coming weeks.

Gallagher said this demand is also reflected in our key markets, with UK sheepmeat prices rising by 30p/kg.

“Prices this week are ranging from €8.10/kg to €8.30/kg in general, with up to €8.50/kg paid to weights of 24kg. Cull ewes are making from €3.30/kg to €3.70/kg in general.”

He said sheep farmers should sell hard, given the very strong and rising markets.