Ireland: Processors ‘losing grip on beef prices’ – IFA
Meat processors are “losing their grip on beef prices” as tight supplies and strong market demand are driving the trade at the moment, according to the Irish Farmers’ Association (IFA).
According to Brendan Golden, the association’s livestock chairperson, some processors attempted to hold back on prices last week, a move he said “backfired”, with prices moving on this week.
“Factories are having to pay 10c/kg above quotes to secure enough cattle this week as farmers rightly dig in and demand stronger returns from the market place,” he said.
Despite quotes for steers starting at €5.20/kg, up to €5.30/kg is on offer, while heifers are quoted at €5.25/kg although deals to €5.35/kg and €5.40/kg are on the table, Golden said.
The IFA Livestock chair said that cow prices, meanwhile, are ranging from €4.50/kg to €5.00/kg, with young bulls making €5.20/kg to €5.60/kg.
“Beef prices still have a journey to travel to reflect the production costs on farms over the winter months,” he said.
He added: “The increased access to the lucrative Chinese market provides a real opportunity which must be grasped by factories and Bord Bia.”
Charles O’Donnell / Agriland
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