Irish Creamery Milk Suppliers Association (ICMSA) livestock chair Michael O’Connell has accused beef processors of cutting farmer prices “under the radar” over the past few weeks, leaving Irish prices “absolutely adrift” of their UK counterparts.

With beef finishers heading into the most expensive quarter of the year for finishing cattle, factories have “cut beef prices under the radar”, he said.

“Unwarranted price cuts by factories” and last year’s record summer and autumn store cattle prices have “knocked confidence out of winter finishers”, he warned.

O’Connell claimed that some factories are turning away young bulls, with others imposing weight penalties.

“They seem to be intent on wiping out young bull finishers. In the 2019 beef agreement, it was agreed that changes to specifications of weights were to be communicated with farmers. That doesn’t seem to be what’s happened here,” said.

He added that “factories continue to play games with farmers” and cutting beef prices at the start of the year was an “age-old” trick so as to bid control of the live trade in order to allow the factory feedlots to restock to cushion the late spring-early summer period.

UK prices

O’Connell expressed concern that the “lag” between Irish beef prices and their UK counterparts is so long standing that it was being normalised and called factories out on the “inexplicable disparities” between the two.

“With tight cattle supplies and firm demand across the water, deadweight beef prices have remained strong, with the average R3 steer price increasing to €5.78/kg for the week ending February 25 2024.”

In comparison, the average price paid by Irish beef processors for the same animal in the same week was €5.14/kg, he said.

“Not only is this badly trailing the UK price, but it's 12c/kg behind the corresponding week in 2023, when the R3 steer price was €5.26/kg.”

The reported R3 heifer during the week 25 February 2024 decreased by 2c/kg to €5.19/kg, he said, placing it 10c/kg behind the corresponding week in 2023.

Irish beef processors are quoting €5.00/kg to €5.05/kg for steers, while heifers demand 5c/kg more, at up to €5.10c/kg, with all prices being exclusive of VAT.

Mart trade

Despite the price cuts over the past few weeks, the mart trade remains strong for all types of beef cattle, with no reported changes to quoted prices this week.

O’Connell said that there is clearly stronger returns from the marketplace than what is being returned to farmers.

With a “sense of tightness” about upcoming cattle supplies, the ICMSA livestock chair is urging farmers to shop around to get the best price for their cattle.