Factory attempts to lower beef prices at odds with reality of markets – IFA
IFA Livestock Chair Declan Hanrahan said attempts by factories to lower beef prices is unjustified and unacceptable. He said demand for beef is extremely strong in all our key markets, with beef prices in the UK rising a further almost 7p/kg in the past week bringing the R4L steer price to the equivalent of €8.64/kg.
Declan Hanrahan said the UK market remains the most important market for our beef and is setting the trend on beef prices, since the beginning of April steer prices have risen by over 18c/kg and continues to increase.
The IFA Livestock Chair said across the EU and in the UK beef supplies are predicted to be down this year with demand out stripping supply, creating the opportunity for strong and sustained beef prices here.
He said the gamesmanship of factories in recent weeks is completely at odds with the realities of the marketplace and must stop. Declan Hanrahan said supplies of beef cattle will be extremely tight for the remainder of the year, Bord Bia predict a reduction of 87,000 cattle for the year.
Throughput is up almost 25,000 head which leaves 110,000 less cattle available for factories for the remainder of the year before the buoyant live export trade for store cattle is factored in.
Declan Hanrahan said farmers are not being misled by the unjustified propaganda from factories, very few finishers are accepting the lower quotes with deals available 10c to 20 c/kg above quotes for larger and specialist lots of cattle as factories struggle to fill lucrative long-term contracts that they must honour.
The IFA Livestock Chair said the mart outlet is also performing very strongly for finished cattle and farmers unable to secure higher prices from factories should seriously consider this outlet.
Declan Hanrahan said all the indicators are for a strong beef market, supplies are lower here and in our key markets for the year ahead with demand for beef exceeding supply levels.
He said factories should stop the gamesmanship and reflect the reality of market conditions in prices offered to farmers.