Beef trade sizzles in sunshine

The beef trade has finally turned a corner, with quotes rising by 5c/kg this week and expected to increase further next week.

Bullocks have moved up to €5.10/kg to €5.15/kg base price, while heifers are also trading up at €5.15/kg to €5.20/kg base price.

Reduced supplies is one of the biggest factors that is driving the price at the moment, with last week’s kill dropping by over 500 head.

The heifer kill saw the biggest fall of just over 850 head to 8,500 head to see the lowest weekly kill of heifers so far in 2024. Bord Bia estimates that the Irish kill will be back by between 30,000 and 40,000 head in 2024. The kill is currently up by almost 30,000 head, so that’s a 60,000 head reduction for the last seven months of 2024 or a 2,200 head reduction in the weekly kill between now and the end of the year.

Beef demand is also very firm with the manufacturing trade the current highlight in the EU and UK.

The European Football Championship, the third largest sporting event in the world, is set to kick off next week in Germany with over 2.5m visitors to Berlin expected over the month-long tournament.

It’s not just the travelling fans who are important, with millions of football supporters watching on TVs in pubs, restaurants and back gardens over the next month.

Irish processors have already seen increased demand from Europe on the back of the huge influx of people expected.

The extra demand has driven the price of cows in the last few weeks with €5.10/kg, and over, being paid for U grading cows.

A low cow kill in the UK is also driving manufacturing beef demand from across the water. A better weather forecast in the UK and across Europe for the next 10 days will also see barbecues taking place, which will drive demand further.