Increases in beef prices have not yet covered the recent rise in input costs facing farmers, with scope for further beef price increases still possible over the coming year, according to the Irish Farmers' Association (IFA).

Calls have been made by IFA livestock chair Brendan Golden for factories to accurately reflect the strong beef markets in the prices paid to farmers, who are no longer in a position to face margin cuts from rising input costs.

“While cattle prices are stronger than last year, the reality is production cost increases have eroded all of these gains,” Golden said.

Estimates

“Based on Teagasc estimates, on some beef farms, fertiliser and feed costs alone are increasing production costs by 65c/kg,” he said.

Golden quoted the strong export demand for manufacturing beef and lower beef supplies moving through the UK as reasons for farmers to expect higher prices.

“Cattle supplies in the UK since the start of the year are running 10% below last year’s levels, providing a real opportunity for factories to increase prices to farmers,” the livestock chair explained.

Price range

According to Golden, the prices being paid for cull cows are in the €3.70/kg to €4.00/kg range.

The base prices being paid by factories for steers and heifers sit at €4.50/kg and €4.55/kg respectively, despite lower quotes being released by processors.

Some beef prices have hit €5.00/kg this week, bonuses included, Irish Farmers Journal beef editor Adam Woods reported this week.