The market outlook for Hereford and Angus beef in premium markets is very positive despite a further 70,000 increase in Angus and Hereford calf births in 2015. This was the view of Bord Bia’s Joe Burke, speaking at last week’s dairy beef event on the farm of Michael and Kathleen Flynn, Puckane, Nenagh, Co Tipperary.

Burke told the more than 250 farmers in attendance “calf births are up 6% or 120,000 head in 2015. There have been over 100,000 extra registrations of calves of dairy origin, and 70,000 of those are additional Angus and Hereford crosses.”

Burke addressed farmers who questioned whether this increase could negatively affect future demand and premiums payable, explaining: “There is actually a very positive outlook, with strong demand from premium retail and food service customers. Demand was only for a few cuts a few years ago.

“More of the carcase is now sold as a branded product and feedback shows demand is still exceeding supply. For example, on the German market, domestically produced young bull product is widely available at a 30% to 35% lower price than Irish Hereford Prime branded beef.

“However, meat buyers for the high-end outlets are still willing to pay extra for the premium product.”

Commenting on extra cattle supplies, Burke said: “Are extra cattle a reason for worry? I don’t think they should necessarily be. If we look at the UK market, no one could have expected their price to remain where it has, or for the exchange rate to be so favourable.

“Prime cattle supplies are tight and demand is steady. Elsewhere around Europe, beef markets are generally more difficult, as we can see from the farmer protests in France currently.

“Although the Irish dairy herd is expanding, the recent milk price decline is likely to cause producers to cull more cows in other EU countries where input costs are higher. This is important because two-thirds of the cattle in the EU come from dairy herds.”

Burke’s views were echoed by Irish Hereford Prime representatives who organised the event in conjunction with Teagasc.

Michael Cleary added that Irish Hereford Prime is gaining more traction in export markets. “ABP are using Pallas Foods to distribute in Ireland, Kepak are processing for Super Valu and other customers. We are dipping our toe in America and also have beef going into Hong Kong, along with strong existing EU demand.”