The potential for stronger cattle prices in Ireland and across the EU is being flagged as a positive for British farmers.
The Agriculture and Horticulture Development Board (AHDB) - the body which represents farmers, growers and others in the food supply chain in Britain - predicted that tighter cattle supplies across Europe will help underpin Irish and EU prices and therefore those of UK beef farmers.
“A positive outlook for Irish cattle prices could offer encouraging undertones for British cattle prices, due to the strength of the relationship between both markets,” said senior analyst with the AHDB Hannah Clarke.
“UK cattle slaughter is forecast to remain similar to 2023, with tighter cattle numbers expected towards 2025, again potentially supportive of cattle prices,” Clarke maintained.
Price outlook
“The UK price outlook may be further supported by the British sourcing commitments of several domestic retailers. However, consumer demand is, of course, the other half of the picture,” she added.
Teagasc has forecast that production of prime Irish prime beef will fall by 4% in 2024 compared with last year. This is mainly due to the continuing drop in suckler cow numbers and a stable dairy herd.
The forecast drop in production for the coming year compounds the reduction in beef output in 2023, when exports volumes fell by 4.5%.
More widely, EU beef production is forecast to decrease by 1% in 2024, following continued contraction of the dairy and suckler herds.
Like Ireland, this is also on the back of a significant reduction in beef output in 2023, when overall dropped by close to 1.5%.
With China back in the market for increased volumes of beef this year, analysts predict that prices are set to rise this year, given that there is a shortage of product globally and supplies will not be available to offset lower EU and UK output.
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