Strong demand and tight supplies have seen beef prices continue to increase this week.

Since the new year, the price of cull cows has increased by 5c/kg to 10c/kg, with R grading cows now freely making €4/kg.

Factory agents remain very active for steers and heifers, with base prices ranging from €4.25/kg to €4.45/kg.

The strong competition has seen agents paying a premium equivalent to 30c/kg to 40c/kg deadweight for factory-fit cattle sold through marts.

Asda, one of the largest retailers in the UK, is to resume stocking Irish beef just months after announcing that it would move exclusively to British beef

Cattle supplies will remain very tight during the first half of the year, with some factories actively trying to forward-buy cattle for the April to June period.

Farmers selling steers and heifers through the Certified Irish Angus Producer Group are being offered a 30c/kg premium for stock sold during this period.

Meanwhile, Asda, one of the largest retailers in the UK, is to resume stocking Irish beef just months after announcing that it would move exclusively to British beef. This is likely to increase demand further.

Unfortunately, the strong market outlook comes as farmers see input costs continuing to spiral with merchants announcing further increases of up to €20/t in ration prices this week.

Fertiliser and energy prices are also soaring.

On the Irish Farmers Journal Thrive demonstration farm, the increase in fertiliser prices in 2022 will add 25c/kg deadweight to the cost of producing a kilo of beef.