Irish factory prices are now well behind those in the markets where we sell our beef.

In recent years, Irish factory prices have peaked in the month of June from which they have fallen to hit the low point in October. However, in 2018, while they peaked in the month of June, they have kept falling since.

Main markets

Relative to the main markets in which Irish factories sell the beef, farmgate prices were the best in the eurozone, and even the gap with Britain was closed to 16c/kg equivalent on steers and just 4c/kg on heifers.

For O3 cows in June, Ireland was ahead of the rest of the EU with the exception of Sweden and Irish cows were 15c/kg ahead of cows in Britain for the O3 grade and a huge 24c/kg ahead of France, the strongest cow beef market in the EU for O3 grading cows.

The main difference this year is that the trade hasn’t picked up in late October or early November as had been the case in 2016 and 2017. That means Irish prices on steers and heifers are now lagging behind farmgate prices in all our main export markets, even where these are primarily young bull markets.

Steers/young bulls

At the week ending 24 November, Irish R3 steers were at €3.65/kg excluding vat. This compares very unfavourably with Britain, where R3 steers were making the equivalent of €4.12/kg, and Sweden, where R3 young bulls were making the equivalent of €4.12/kg.

In our main eurozone markets, Irish prices for R3 steers are a massive 59c/kg behind Italian R3 young bulls. German young bulls were making €3.93/kg in the last week of November and in France where prices lagged behind Ireland for much of this year, they were 7c/kg ahead on €3.72/kg for R3 young bulls.

Heifers and cows

Comparing heifers, Irish R3 prices were at €3.78/kg for week ending 24 November, which is behind all of the main export markets for Irish beef with the exception of Germany, where €3.72/kg was the price of R3 heifers.

Even on cows, where Ireland had been so dominant, prices are well back, with Irish O3 cows making €2.78/kg at 24 November, whereas in France the same cows were worth 24c/kg more at €3.02/kg. Irish prices remain ahead of Britain, where the equivalent price for O3 cows was €2.63/kg.

* All prices net of vat and supplied by Bord Bia.