In stock markets the term “bull run” is used to describe a prolonged period of rising prices and that is what has been happening in the British market week on week for the past five months.

It came to an end this week as prices levelled off, and the reported average price is back by 1p/kg to £3.55/kg, which is equal to €3.94/kg at an exchange rate of 90p=€1. The R3 steer price, which is used by the EU as a reference price, was £3.65/kg (€4.05/kg). With the value of sterling continuing to weaken this week, this is still well ahead of the Irish R3 steer price, which was reported at €3.64/kg. This is 40c/kg behind the price in Britain.

Elsewhere in Europe, prime cattle prices are relatively weak. In France, the only other EU country with a meaningful number of steers, the R3 price was €3.54/kg and that continues against a background of retailers in general not offering imported beef, including Irish. Italy is better, with R3 young bulls there making €3.76/kg, 11c/kg better than Irish prices. Another important market for Irish beef exports is Germany. R3 young bulls are at €3.65/kg there, which is on par with Irish prices.

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Export markets

Two other important Irish export markets present a complete contrast in farmgate prices. Sweden which is outside the eurozone, reported the best price in Europe last week at €4.67/kg for R3 young bulls. It has a relatively small domestic kill and is a net importer of beef that consistently returns Europe’s highest beef price. The Netherlands, on the other hand, is a strong market for Irish steer beef but doesn’t value its domestic production particularly highly, paying just €3.12/kg for R3 young bulls.

Globally, the US continues what the financial world describes as a “bear market”, with prices last week at the equivalent of €3.20/kg for cattle similar to our R3 grade. This reflects the restocking of feedlots after the droughts of recent years and represents a €2.45/kg fall from the market high just 18 months ago. This is bad news for potential Irish manufacturing beef export, as are reports that Brazil is likely to use the entire US import quota that Ireland would export under and supply much more besides with tariff paid.

South America

The South American market is relatively stable at present and significantly stronger than this time last year, though still producing the cheapest beef in the world by far. The Brazilian equivalent of R3 cattle are making €2.53/kg at present, while Uruguay is slightly stronger at €2.61/kg.

Australian prices continue to be driven by the collapse in cattle numbers caused by drought. The quoted price for the R3 equivalent is €3.73/kg, which continues ahead of the Irish price paid and represents a dramatic rise from being the lowest price beef producing region in the world as recently as three years ago at under €2/kg. The figure reported from Australia doesn’t reflect just carcase price as there is an element of live cattle price included but this is how the Australian price has been calculated over a long period and, for comparison purposes, is the price we use.

(Price data: Bord Bia)