Cattle prices in the major beef exporting nations of the world have followed a similar pattern to prices in Ireland − steady for several weeks without much sign of an immediate lift due to weak beef markets.

US

Starting in the US, cattle prices are holding on to the gains made at the beginning of September and are holding above the equivalent of €4.30/kg for the third week in a row, a figure that would be very acceptable to Irish farmers. Beef stocks at the end of December were around 233m tonnes, which is over 6m tonnes less than expected, and taken as a reasonably positive sign for demand in the weeks ahead. However, it is 14% above the five-year average for stocks of 204m tonnes. Prices for imported 90CL cow manufacturing beef, the main ingredient for burgers, are in the €3.75 to €3.80 equivalent range. This would be attractive enough to many Irish factories, though it can be beaten in the North by factories with strong Red Tractor and top-end burger chain business.

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South America

Prices are steady in Brazil, holding above the €2/kg equivalent line. This is not great and overall the South American Mercosur nations' average is around the equivalent of €2.30/kg, which is a six-year low. Their main volume export markets are struggling at present.

Russia

In Russia, with the currency in freefall, 80vl manufacturing beef and trims are trading at the equivalent of €1.57. Elsewhere, the Middle East and North Africa are oversupplied, with the market for boneless forequarter trading around the equivalent of €2.90 or less and reports of lower volumes trading well below this for March delivery. Egypt is a major buyer in this area and will be of particular interest to Irish farmers with discussions ongoing about the approval of Ireland as a supplier of live cattle after a 20-year BSE interruption.

Australia and New Zealand

Business is brighter in the other major beef exporting region of the world, Australia and New Zealand. New Zealand supply is in peak season and, as is usual with both nations, their prime cuts are making their way to Asia and the forequarter manufacturing to the US. Steady is the theme again for cattle prices, with the equivalent of €3.27/kg paid in Australia and just over the equivalent of €3/kg in New Zealand. So far there is no evidence of Australian supplies falling, with shipments of 90CL manufacturing beef to the US running ahead of last January. Over 14,000t of Australian beef has been landed in the US already this year compared with less than 9,000t this time last year. New Zealand has been even more active, with 7,500t landed compared with just over 2,000t in January 2015.