Beef farmers on both sides of the Irish border have seen factory prices rise to record levels in recent weeks, buoyed by a surge in demand from retail and food service markets.

In NI, U3 grading steers and heifers are commanding record prices between 400p and 410p/kg.

South of the border, prime cattle at the same grade are making €4.70 to €4.80/kg with quality assurance premiums and VAT included, which converts to a sterling equivalent around 380p to 388p/kg.

While there is still a 20p to 30p/kg differential in favour of NI cattle, the gap between local plants and Irish factories has narrowed significantly in recent weeks.

Price gap

Back in late February, prices paid for U3 prime cattle in NI were around the 382p/kg mark.

At the same time, Irish steers averaged €4.11/kg for U3 animals, or the equivalent of 335p/kg. The 47p/kg differential on a 380kg carcase was worth £179/head.

By late March, Irish prices had risen to €4.20/kg for U3 animals, or a sterling equivalent of 342p/kg, while NI plants were paying 385p/kg, leaving a £163 differential on a 380kg carcase.

By the final week of May, Irish U3 steers had increased to an average of €4.51/kg, which equated to 368p/kg.

In NI, cattle at the same grade were typically 391p/kg, meaning the differential on a 380kg carcase had closed to £87.

At the outset of July, the differential on U3 steers is around 20p/kg, or approximately £76 on a 380kg carcase.

Price increase

A key factor behind the upturn in Irish cattle prices has been the full re-opening of food service markets across the UK, which are an important outlet for Irish beef, and where country of origin labelling is less of an issue than in major UK retail.

Prices have also hardened on the back of a significant tightening in supply.

Exports

Meanwhile the differential in prices that has existed for much of 2021 has resulted in a surge in live exports of Irish cattle to NI, which are up 71% year on year to stand at over 30,000 head.

Imports of Irish cattle for direct slaughter at NI plants is also higher year on year with 14% more animals moving north for processing. Across the first six months of 2021 the total stands at 9,222.

NI kill

Over the same period 220,198 cattle have been slaughtered at NI plants, of which 168,927 were prime animals and 46,134 were cull cows.

During the first half of 2020, the cattle kill came to 228,850 head. The 2021 kill is the lowest for the first half of the year since 2017.

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