Beef factories must pay a price to farmers that reflects improving market conditions in key export markets, Irish Farmers’ Association (IFA) beef chair Declan Hanrahan has said.

The beef chair stated that farmers should not be misled by unfounded negativity from factory agents or attempts to lower quotes.

All factories are having to pay 10c to 20c/kg above quotes to secure enough cattle to fill their orders, with some already starting to plan for the Christmas trade, he added.

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UK

On the UK market, Hanrahan said tighter supplies have increased demand for beef by an estimated 6% compared to last year, with Irish beef best placed to fill this gap.

The beef chair added that UK production will be down 5% year-on-year with most of this evident in the coming months. It will happen for the Christmas trade which factories must take full advantage of to return higher beef prices to farmers.

“It’s a similar story in the EU beef market where production is estimated to be down 8%, with some countries down almost 14%. This creates further opportunities for Irish beef and for stronger returns to beef farmers,” he said.

UK prices stabilised over the past few weeks. As supplies tighten, prices increased last week to the equivalent of €7.87/kg for R4L steers.

EU beef prices have risen by 20c/kg since early August and are expected to continue to strengthen, Hanrahan outlined.

Highlight Irish advantage

The beef chair also referenced that Bord Bia has predicted supplies to be back by almost 100,000hd this year, forcing factories to compete strongly for what will be available over the coming months.

“While market conditions are strong and justify a turnaround in beef prices, the increased access to the UK and EU markets from Australia, New Zealand and Brazil continues to be a concern,” he said.

He said Bord Bia and factories must challenge this product in our key markets and highlight the exacting standards on welfare, environment and traceability at significantly higher costs in Ireland.

“We have no influence on trade deals that the UK do, but our Government can and must influence trade decisions at EU level and stand firm in support of Irish suckler and beef farmers by protecting the EU beef market from additional South American beef through the Mercusor trade deal.”

Hanrahan said the Government, the Minister for Agriculture Martin Heydon and Irish MEPs cannot allow Irish beef and the livelihoods of suckler farmers to be traded off in the Mercusor trade deal.