The threat of a huge beef quota for South American imports is well demonstrated by the current price of beef in Brazil. While Irish farmers have had to endure price cuts since Christmas, they are still in a different league from what is being paid in Brazil. There, according to the most recent Bord Bia figures, the equivalent of an R3 steer is being sold for €2.22/kg when converted to euro.

This is currently the weakest price of a major beef-producing nation with their neighbours in Argentina and Uruguay slightly ahead of this. It is a significant jump up from this to USA prices where the equivalent to an R3 steer is making €3.51/kg when it is converted to euro.

In Europe, beef prices have been a mixed picture since the turn of the year. France, like Ireland has seen prices fall. On the R3 young bull in France, prices are back to €3.94/kg from a height of €4.01/kg the week before Christmas. The fall in Ireland on R3 steers has been 4c/kg to the week ending 20 January from a recent high point of €3.94/kg at the end of the year. British prices have also fallen but from a much higher base. At the week ending of 20 January the R3 steer in Britain was averaging the equivalent of €4.14/kg, which was down almost 6c/kg since the end of 2017.

Italian young bulls have shown the biggest fall of all in January, with the R3 back 10c/kg from €4.26/kg to €4.16/kg. This is still very substantially ahead of Irish R3 steer prices and if this gap is sustained it will make Italy a substantial buyer of Irish store and weanling cattle again in 2018.

The one category that Irish factories dominate in Europe is in buying cow beef and 2018 so far has continued that trend. While Irish cows were back a couple of cent per kilo to €3.26/kg on O3 grades since the beginning of the year, this is still way ahead of the main beef producing countries in Europe. Looking at the same grade of cow in other countries, Britain is paying 28c/kg less than Ireland at the equivalent €2.98/kg at the 20th January. Even France which normally is ahead of Ireland is well behind at €3.07/kg for O3 cows and Italy is 7c/kg further back at €3.00/kg. Spain which is also a useful customer for Irish beef is way back at €2.23/kg for O3 cows.

All prices are supplied by Bord Bia and are net of VAT.