Weekly exports of cattle from NI to the Republic of Ireland have effectively doubled in the past couple of weeks as prices available there continue to be significantly ahead of NI prices across certain grades and classes of livestock.

The market in the Republic of Ireland is particularly strong for cows, with average prices 20p/kg to 40p/kg more than available in NI. However, there are reports from farmers that up to 330p/kg is being widely offered for R grading heifers to go south for slaughter. In each of the last two weeks, over 500 cattle from NI have been sent for direct slaughter in the Republic. Compare that to an average of around 250 head for much of March.

How long the price advantage lasts depends in part on the strength of the euro against sterling, and at a conversion rate this week of €1 = 77p, the trade is slightly less attractive than it was.

However, with reports that numbers of finished cattle south of the Irish border could remain tight for the next few weeks, it is adding some much needed competition into the NI market.

Finished cattle numbers in NI are not plentiful, and there are the first signs that local meat plants will have to react to the price differential by raising quotes here. Base quotes are generally in the range of 304p/kg to 306p/kg, with 310p/kg available for heifers, and 312p/kg to 314p/kg for regular supplies of in-spec cattle. Some farmers are now holding out for 320p/kg.

Higher prices

The pace at which meat plants react to the higher prices south of the border partly depends on the numbers that can move south. The trade is limited to herds currently TB free, and therefore rules out most large beef finishers.

With beef prices in NI the lowest anywhere on these islands, Oisin Murnion, chair of the National Beef Association (NBA) in NI, has questioned the Going for Growth strategy, which he said seems to be about delivering more output at lower prices for farmers.

“We are undercutting the rest of the UK market, and helping to keep the overall price of beef down. We need an overall strategy and one that involves free movement of cattle and properly selling NI beef. At present, it just looks as though meat plants and Government are working together to keep prices down,” he told the Irish Farmers Journal.