Irish beef processors continue to work at the bottom end of the market when it comes to the price they’re paying Irish beef finishers.

According to figures from Bord Bia, the average price paid for R3 bullocks so far in 2023 has been €5.24kg excluding VAT, up from €4.54/kg for the same period in 2022.

Across the water in Britain, our largest market for Irish beef, the average price paid for R3 bullocks so far in 2023 has been €5.45/kg, 21c/kg ahead of the Irish price.

R3 bullock quotes have risen in recent weeks to €5.60/kg excluding VAT in the UK compared to a current Irish price of €5.28/kg excluding VAT.

In Northern Ireland, it’s been a similar story, with the average price coming in at €5.40/kg excluding VAT.

Moving to the European market where young bull beef is the standard system of production, prices are also well ahead of the Irish.

R3 young bulls in France are coming in at an average price of €5.38/kg so far in 2023, while R3 young bulls in Italy are coming in at €5.13/kg. Spanish young bulls are also up at €5.35/kg.

Reflecting the strong manufacturing beef trade, the Irish price for O3 cows comes in at €4.48/kg excluding VAT, which is just ahead of the British O3 cow price of €4.26/kg and behind the French O3 cow price of €4.89/kg. The current R3 cow price in France is €5.40/kg.

Numbers of finished cattle on farms remain tight, with Irish processors currently concentrating on contracted cattle coming from larger feedlots.

The Irish kill is currently back 31,593 head, with the bullock kill back by just over 10,000 head.

Bord Bia has estimated the 2023 cattle kill to be back by as much as 80,000 head compared to 2022.

UK figures

According to the latest retail figures in the UK, demand for beef is strong with consumer spend up by 9%, while volumes of sales are only marginally down by 1.7%.

Retail prices have also increased compared to the same week 12 months ago.

According to AHDB, the retail price of diced beef has increased from £8.49/kg (€9.64/kg) in May 2022 to £10.52 (€12.06/kg) in May 2023, an increase of 24%.

Rump steak has increased in price from £14.93 (€16.96/kg) in May 2022 to £16.11 (€18.30/kg) in May 2023 an increase of 7%.

Standard mince has seen the largest increase currently, retailing at £4.98/kg, (€5.65/kg), up 35% from the May 2022 price of £3.69/kg (€4.19/kg). Consumers continue to trade down in terms of cuts when shopping with roasting joints and steaks continuing to be swapped out for diced and minced cuts of beef.

Global meat production is set to remain unchanged for 2023, with beef production in the US expected to fall by 5% following a big cull of the breeding herd in recent years due to high prices and drought.

On the other hand, Australia is at the other end of a herd rebuilding cycle and it will see beef production increase by 12% with most of this destined for the Asian market.

Brazil, one of the largest beef-producing countries in the world, will see a 2% increase in beef production with Chinese demand expected to soak up a lot of this extra production.