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Rising demand for beef globally is helping to strengthen Irish cattle prices in recent weeks.
World cattle prices are rising rapidly on the back of strong demand, particularly for manufacturing beef.
Despite relatively strong supplies for the time of year, farmers have this week secured a base of up to €4.20/kg for steers and €4.30/kg for heifers.
In general, prices are running 12c/kg to 15c/kg ahead of last year. With demand set to remain strong and availability of finished cattle likely to tighten in the coming weeks, most agents are forecasting further price increases.
This is despite the Irish price surging ahead of the main beef-producing regions of Italy, France and Germany.
With the British price at €4.45/kg, the recent increase in the Irish price has reduced the UK/Irish price differential to just 20c/kg to 25c/kg.
The recent trend in Irish beef prices suggests that increased access for Irish beef to non-EU markets, in particular the US, is paying off. Irish companies are starting to benefit from a global market that is outpacing the EU market.
Having traditionally hovered around 60-70% of the EU average price, US beef prices are now outperforming even the British market.
There have also been price surges in Canada, Australia and New Zealand. Rapidly growing demand from China for a range of beef cuts, combined with tight global supplies, is helping to create confidence in the markets.
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