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Factory beef prices overall in the EU are higher than this time last year, though prices in the world’s major beef exporting countries are significantly lower.
Currency has to be a consideration when comparing prices outside the eurozone, with both sterling and the US dollar weakening significantly against the euro over the past year.
All prices used in this comparison are R3 steer or young bulls for first week of October and are net of VAT.
Ireland lagging behind
The Irish R3 steer price was €3.70/kg, 6c/kg better than this time last year.
In our main export beef market, the UK, the euro equivalent price paid was €4.23/kg compared with €4.20/kg a year ago and there was a similar differential of 53c/kg.
French R3 young bull prices are €3.87/kg this year compared with €3.54/kg in October 2016. Back then they were 10c/kg lower than Ireland, this year they are 17c/kg higher.
Irish prices normally drop back against the rest of Europe this time of year but the gap has grown this year
Prices in Germany and Italy are also significantly higher than a year ago.
German R3 young bulls are making €3.98/kg compared with €3.65/kg in October 2016. In Italy the price for R3 young bulls is €4.17/kg compared with €3.76/kg this time last year.
Spanish prices too have enjoyed a substantial lift over the past year with R3 young bulls increasing from €3.63/kg to €3.86/kg.
Of Ireland’s main beef export destinations, only the Netherlands is behind Ireland on price.
The Dutch have also had a substantial lift in their beef price from a low base of €3.12/kg a year ago to €3.38/kg this year.
Non-EU markets slip
Outside of the EU there has been a substantial weakening of beef price, with the stronger euro contributing.
In Australia the price has fallen from the equivalent of €3.73/kg last October to €3.13/kg this year.
Brazil, which has built huge export business in the lucrative Chinese market, has also had a price drop from the equivalent of €2.53/kg last October to €2.30/kg this year.
US prices are similar at €3.24/kg equivalent compared with €3.20/kg last year.
Irish prices normally drop back against the rest of Europe this time of year but the gap has grown this year.
No doubt the weekly Irish beef kill, which has been around 38,000 for the past few weeks, puts pressure on finding markets whereas when numbers are much lower in the earlier part of the year factories are chasing cattle and are stronger beef sellers.
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