Irish beef price hits lowest point in three years

Irish beef prices have slumped again to hit their lowest point in more than three years, keeping the squeeze on the struggling UK cattle market.

The Irish R3 deadweight steer price dropped to 290p/kg on 22 June – 18p/kg down from May and 86p/kg lower than a year earlier.

Weak consumer demand and high slaughtering numbers have pushed prices down to the lowest level since April 2011, according to analysis by Eblex.

See also: Waitrose sets minimum farmgate price until October

The gap between UK and Irish prices has stretched to 39p/kg, making imports more attractive for British processors and supermarkets, which buy close to half of Ireland’s beef.

This difference is still an improvement on the 61p/kg at the start of the year, but remains well above the historical average of about 20p/kg.

UK imports of fresh and frozen Irish beef were up 14% on the year in April.

AHDB/Eblex senior analyst Debbie Butcher said the differential had widened again the past couple of weeks.

“Pressure on UK prices is there and it is about the differential in prices between the two, at a time when you won’t see the retail side of the equation adding any stimulus.”

In May, Irish beef production was 18% higher on the year, due to significantly higher average carcass weights and a 13% rise in slaughterings.

In the UK, prime cattle throughputs were up 1% in the year to May, heifers were 3% higher and steers were 1% up.

“Looking ahead, that uplift is going to slow down, especially for young bulls,” said Ms Butcher.

“Supplies are going to tighten in Ireland and here towards the end of the year and certainly towards 2015 and 2016.

“It is very difficult at the moment if you are finishing, but we are coming from a very high position last year.

“I think we all recognise the levels farmgate prices went to last year were unsustainable amid a challenging retail environment.”