With the downpours a couple of weeks ago creating the first flush of cattle this autumn, factories predictably used the occasion to drop prices by up to 15c/kg in places. Where €3.85/kg had been available, €3.70/kg became the new norm. Significantly the falls weren’t nearly as big in the south and east, where farmers weren’t under the same pressure to sell.

Two developments since then have put the spotlight on the beef industry and its sustainability in this country. The latest cost figures coming out of Teagasc on the average cost of production of a kilogramme of beef suggests the average farmer needs between €4.60 and €4.80/kg, which is a different planet from the €3.70/kg at present, just to make a €50/head margin. Prices struggled to get over €4.00/kg for much of this year so achieving €4.80/kg from a weak EU market and a UK market that has relegated us to the second tier, and that was before sterling weakened against the euro, simply isn’t going to happen.

One more positive glimmer of hope for livestock farmers is the news this week that a boat was on its way shipping live cattle to Turkey with further plans for shipping between 3,000 to 5,000 weanlings over coming weeks. This will provide a welcome, though likely short-term, option for farmers with the suitable type of stock to sell. Turkey is a closed market that only opens to external supply when its suppliers are short as they are at present so it will be an opportunity that is unlikely to last in the longer term.

The reality for Ireland is that with an annual beef kill of 1.75m, it is what happens beef sales that will determine its long-term sustainability. The North is in a better position currently in that it has access to the Red Tractor branding for its 450,000 annual kill. Irish factories correctly point out that they are paying on average considerably more than the EU average price. However, outside of the soon departing UK, this is a particularly low bar to clear at present.

Italy, whose prices are on par or slightly ahead of Ireland, has never properly recovered from the economic crash and France, despite introducing a de-facto blockade of imported beef on its supermarket shelves, has a price that lags behind Ireland. The other main market outside of the UK that Ireland supplies, the Netherlands, is an interesting story that spotlights the potential the UK could have. Its beef production is very much a byproduct of its dairy industry, with R3 young bull prices at €3.12/kg and R3 heifer prices at €2.94/kg. Yet Ireland, through successful target marketing of the values of our beef, can sell substantial quantities there every week.

We have failed to do this in the UK. Volume-wise it is our main market, with more Irish beef eaten in England than at home. Yet our product is relegated to the second division despite our production values and traceability systems being on par or ahead of the UK. Outside of Asda, we have a minor presence in Tesco and Sainsbury’s and not at all in the other seven of the top 10 retailers. Country of origin labelling has banned Irish cattle exports going to England so we are left with the second tier beef market.

Irish farmers deserve better given that they have stepped up to the plate in Quality Assurance and it falls to Bord Bia and the factories to get more from the market. While Bord Bia and our Government officials remain positive for Irish beef into China after last week’s trade mission, again the pressure needs to continue on Chinese officials to respond on inspections.

The Turkey opportunity is welcome, but not enough in itself to shape Irish cattle price. As for €4.80/kg – that is a dream and any Irish farmer would happily split the difference between that and the €3.70/kg that is being offered today.