Friday, December 1, 2023
4.1 C
HomeBeefTight supplies ‘force’ factories into increasing beef prices
Catherina Cunnane
Catherina Cunnane
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
Reading Time: 2 minutes

Tight supplies ‘force’ factories into increasing beef prices

Update on beef prices: August 2021

Farmers should ignore the “unjustified negative commentary” from some factories and their agents and sell hard when cattle are fit to move to maintain control of the supply-demand balance.

That is the view of IFA livestock chairman, Brendan Golden, who stated that strong farmer resistance has maintained beef prices this week.

He said that tight supplies have “forced” some factories into increasing quotes to secure numbers.

August 2021 beef prices

Golden reported that factories are paying €4.20/kg base price to secure steers this week. Furthermore, he said that €4.25/kg is available for heifers, despite some lower quotes.

Golden said the supply-demand balance is “very much in farmers’ favour”. With grass supplies good, he said farmers should move cattle as they become fit.

Prices in our key export markets – the UK and the EU – are strengthening.

“UK supplies are predicted to be back by 5% for the remainder of the year, which creates a positive market environment.”

“Supplies of finished cattle are estimated to be back 40,000 head for the remainder of the year compared to 2020.”

“Factories know this, and in a positive export market where reduced volumes of South American beef are available, this places Irish beef in a strong position.”

What IFA is seeking in Budget 2022

Meanwhile, the farm group has launched its pre-Budget 2022 submission, laying the foundation for a “fair, sustainable” agri-food sector.

IFA president, Tim Cullinan, said it provides a blueprint for government to follow if it “genuinely wants to ensure the future viability” of Ireland’s largest indigenous sector.

Firstly, IFA seeks co-financing to ensure “properly funded” Pillar II schemes.

These include:

  • Areas of Natural Constraint (ANCs);
  • Green Low-Carbon Agri-Environmental Scheme (GLAS);
  • Targeted Agricultural Modernisation Scheme (TAMS);
  • Beef Data and Genomics Programme (BDGP – suckler cows);
  • Sheep Welfare Scheme;
  • Organic Farming Scheme.

“We are seeking €300 per suckler cow, €30 per ewe and €300m for ANCs. In addition, we need a new scheme for tillage farmers to stop the exodus from this sector,” Cullinan said.

Read more on what IFA Budget 2022 submissions.

- Advertisment -

Most Popular