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Irish beef factories dominate the cow trade in Europe, paying the top price for cows when compared with farmgate prices paid in our main export markets, with the exception of Sweden.
Comparing prices paid last week, Ireland was on €3.29/kg, 6c/kg ahead of Germany, 14c/kg ahead of the UK and 15c/kg ahead of France, which is traditionally the strongest cow market in the EU. Sweden led the way on cow prices at €3.98/kg last week.
While Irish factories are at the top end of the cow trade, they are well off the pace when it comes to prime beef. Irish R3 steers were making €3.88/kg last week, and of our main export markets only the Netherlands had a lower farmgate price.
Elsewhere in the EU, Sweden dominates by a distance on €4.34/kg, with Germany on €4.09/kg, Britain on €4.06/kg and Italy on €4.02/kg. Even Spain, normally lower than Ireland for steers, is ahead of us on €3.93/kg. France is the same as us on €3.88/kg. Apart from the UK and Ireland, all the others are for young bulls.
On R3 heifers, Ireland at 3.79/kg is behind all our main export destinations apart from the Netherlands on €3.01/kg. Sweden is the best payer again on the equivalent of €4.42/kg, while Italy is again a very strong market at €4.29/kg.
Britain is next at the equivalent of €4.07 for R3 heifers while Spain is paying €4.01/kg. France is averaging €3.87/kg and Germany is the closest to Ireland on an average of €3.83/kg last week.
Strengthening euro affecting global price comparisons
Looking at the global beef exporting countries, prices are particularly weak at present, partially as a result of a strengthening euro. For the example, the US was paying the equivalent of €3.58/kg last week, which is 56c/kg lower than this time last year. However, when last year’s euro exchange rate of €1 = $1.07 is applied, then the US price is exactly the same. The 56c/kg difference reflects today's exchange rate of €1 = $1.23, which is a considerable strengthening.
The euro has also strengthened against the Australian dollar from €1 = A$1.40 a year ago to A$1.60 today. However, even factoring that in, Australian prices have fallen heavily from a year ago to the equivalent of €2.97/kg. This is a euro per kilo less than the same week last year. Brazil’s prices are at the equivalent of €2.17/kg for steers.
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