After a period at the end of last year and beginning of this year when cattle prices increased faster in EU, UK and world markets, Irish farm gate prices have been slowly catching up.

However, when we compare the R3 Irish steer price with what is being paid in other major beef-producing countries and markets for Irish beef, we remain off pace.

For the week ending 17 March, the Irish average R3 steer price was €4.70/kg (excluding VAT), which is 32c/kg below the EU average R3 young bull price calculated on what is being paid across the other 26 EU member states.

The price in Germany is more than €1/kg higher than Ireland at €5.72/kg and that is for R3 young bulls, not steers.

Even countries like the Netherlands and Poland, which traditionally lag well behind Irish prices, are now ahead on €4.76/kg and €4.64/kg respectively, according to the EU commission.

Unlike with mainland Europe, Irish prices have lagged well behind UK prices for several years.

Irish farm gate prices have been slowly catching up

AHDB, the English levy board, reports that last week the average price in Britain for R3 steers was the equivalent of €5.10/kg. In Northern Ireland, the average was €4.96/kg for R3 steers.

World prices

At a global level, Argentina, historically one of the cheapest beef-producing countries paid the equivalent of €4.76/kg on average the week before last. This is a massive €1.54/kg higher than in the same week in 2021.

In the UK, where beef was a large contributor for record JBS profits in 2021, the average steer price was the equivalent of €4.40/kg, which is worth €4.65/kg when an adjustment is made for carcase dressing.

US prices are €1.10/kg higher than they were for the corresponding week last year. Australia, where the herd rebuilding is coming to a conclusion, reported the equivalent of €4.31/kg.

Irish prices also remain ahead of Brazil, where according to Brazilian sources used by the EU commission for comparison, the price reached the equivalent of €4.18/kg earlier this week.

Even though Brazil prices have been stable or weakening slightly in local currency, the increase in the value of the Real compared with the Euro has increased Brazil’s relative price considerably.

Analysis

Irish beef represents among the best value in the world at present for traders. Exceptionally strong manufacturing beef markets in Europe, particularly Germany, have driven German, Dutch and Polish prices.

Ireland is a major supplier to German and Dutch markets, but for high value cuts rather than manufacturing beef used in mince and burgers.

The supermarket trade in Britain isn’t as strong as it was, so Irish supplies to that market and UK manufacturing markets aren’t returning as much as mainland EU markets.

At a global level, China is driving South American trade and to a growing extent, the US beef trade. Demand has been exceptionally strong in the first two months of 2022.

EU production forecasts are lower for 2022 - Brazil cattle slaughter was down 7% in 2021, while Australia had its lowest beef exports in 36 years.