Finished cattle in Britain are worth €300/head more than cattle slaughtered in Ireland this week.

Strengthening beef prices in Britain have opened up a 90c/kg price differential for cattle slaughtered on either side of the Irish Sea.

A 350kg R3 steer finished in Britain is now worth €315 more than its Irish counterpart, taking an Irish beef price of €3.75/kg when in-spec bonuses are applied.

While demand from Irish factories is rising, it is not being reflected in farmgate prices, much to the dismay of farmers. In contrast, beef prices in Northern Ireland have risen sharply over the past seven days, with base quotes increasing by as much as 27c/kg at certain plants. R3 prices north of the border stand at €4.52/kg (including VAT), bringing the differential on the same 350kg steer finished on either side of the border to €270/head.

Restrictions surrounding “nomad” cattle are underpinning the northern trade as they limit the availability of finished animals.

The Irish Farmers Journal understands that one prominent Irish processor operating in Britain has offered finishers €4.79/kg (including VAT) for November. With over 50% of Irish beef destined for the British market, it begs the question as to how Irish processors can currently justify paying €0.70/kg to €0.80/kg less for prime Irish cattle.

Irish beef prices are now at 98% of the EU average price. Like Ireland, the EU beef price has been slow to increase in line with growing demand.

IFA president Eddie Downey said with beef prices in our major export market to the UK increasing strongly by over €100/head since July, the Irish factories clearly have scope for significant lifts in prices here. He said the rise in UK prices must be reflected by the factories with immediate price increases to farmers to start narrowing the excessive gap between Irish and UK prices.