Irish beef market 'appears much stronger than had been expected'
And Is Caught End But Appear Both Does It Rare Processors The Guard Have That This Been Year Finishers It Off The
Beef prices at the factories are continuing to move upwards this week being driven by demand which is heading for an all-time record finish to 2024 for the finishers.
Across the country another 10 cents/kg has been added to the factory prices pushing the return on Angus and Hereford above €6/kg, giving a return which, just a short time ago, the breeders and finishers could only have dreamed about ever being paid.
Base prices on offer for steers are ranging between 540-500 cents/kg, while heifers are being quoted on a base of 545-550 cents/kg. Suppliers to the factories are reporting that more is being paid for good stock this week, particularly to those with larger numbers to offer.
Both Hereford and Angus benefit from the generous breed bonus as well as the quality assurance payment.
"The market for Irish beef appears to be much stronger than had been expected and the processors are under pressure to supply the orders which they have on hand for Christmas and the finishers are benefiting," summarised one supplier.
It is rare that it happens, but it does appear that both the processors and the finishers have been caught off guard this year-end. It is probable that the processors did not bank in sufficient forward animals at the finishing unit under contract or control and the finishers sold off earlier in the autumn at the going prices.
All categories of beef are benefiting. The R-grade young bulls are making 550-570 cents/kg this week and R-grade cows are fetching 530-540 cents/kg, which is a new record price for the category.
The previously mentioned market situation that mince has become the volume sector for sales, and which has been driving the cow prices, has come to the fore in the first release by the new Food Regulator on the prices which the processors are getting from the market.
One year after taking up the new office, Food Regulator, Niamh Lenehen has reached an agreement with the major processors, ABP, Dawn, Keepak and Liffey Meats, representing 80% of beef throughput, on the market price returns, which will be analysed, computed and published by her office weekly to provide more transparency on beef pricing, relative to return to producers.
For the week of November 25, the average price received by the processors for forequarter beef was €4.89/kg, Hindquater €7.19 and Mince (5% fat) at €8.67.
The intake at the factories last week was slightly increased to 39,614 head, which included 12,842 steers, 11,924 heifers, 11,815 cows and 2,441 young bulls.
