Factories must reflect the strong market conditions in the UK for beef, according to IFA national livestock chairman, Brendan Golden.
He said over the past two weeks, prices in the UK have stabilised and started to rise in response to the demand for beef in our main export market.
Currently, the equivalent VAT inclusive price for R3 steers in the UK is €4.34/kg. This is 53c/kg above the €3.81/kg paid for the same grade here, a differential of €190 in a 360 kg carcase.
Golden said cattle supplies for the remainder of the year are predicted to be tight. Slaughterings to-date are up 47,651 head in total compared to this time last year.
“The predicted kill for 2020 is similar to last year, leaving 50,000 fewer cattle to be killed between now and year-end, compared to 2019,” he said.
The IFA livestock chairman said beef sales have performed well in the UK over the summer months and demand should strengthen further as buying for the Christmas trade starts.
He stressed that significant price increases are justified based on the current market conditions and supplies of cattle that will be available and factories must reflect this in prices paid to farmers.