After seven months of downward pressure, beef farmers are finally seeing prices starting to rise. This week, farmers with select lots of steers and heifers have secured a base of €3.85/kg, with a base of €3.80/kg now more widely available. IFA president Eddie Downey said the supply and demand situation is definitely changing. Meanwhile, mart managers are reporting a strong trade for all classes of stock, driven by strong grass growth.

“Beef farmers have come through an extremely difficult period and there is now an opportunity to lift prices on the back of tighter supplies,” he said.

While factories are trying to resist any price increase, the Irish Farmers Journal understands meetings have been taking place at individual processor level to discuss supply patterns over the next few months.

It is forecast that a drop in calf births during 2013 combined with higher live exports would see the number of finished cattle available to processors decline by over 150,000 head during 2015.

However, processors now fear that this tightening could become evident in the market in 2014 due to the increased number of bulls being slaughtered at less than 16 months old and an overall reduction in average age at slaughter.

The trend in Ireland is being mirrored both in Northern Ireland (NI) and across Britain. In Northern Ireland supplies have tightened dramatically with prices having increased by the equivalent of 5-8c/kg. While prices in Britain have remained stable industry sources are forecasting an upward trend over the coming weeks. With the euro have eased to 0.79p sterling the English price now equates to an equivalent base of €4.10/kg. The favourable exchange rate has also seen an increase in the number of factory fit animals being bought in the south for direct slaughter by NI processors.

The Irish Farmers Journal also understands that factories have gone some way to relax the tight specifications which were being imposed throughout the spring. Industry sources indicate a number of processors willing to engage with farmers on the supply of 22 month bulls for later in the autumn. The upper weight limit remains at 440kg.