Buoyant Irish live exports to support summer UK beef prices

Factory efforts to peg deadweight beef prices below 480p/kg this summer could be stymied by elevated live exports from Ireland to non-UK destinations, with shipments of weanlings up 29%.

Many beef finishers who have seen prices fall by up to 10-15p/kg in some regions will be hoping this prognosis comes to fruition after spending record money on store cattle earlier this year.

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Good-quality cattle can still be sold at £5/kg deadweight, but analysts say retailer margins are still too slim at this price point, suggesting prices may need to fall.

But the trade has accused processors of using decreasing processing capacity and three four-day weeks in May as leverage to keep prices down.

Some suspect easier grain and fuel prices are allowing integrated finishers to cover costs, allowing downward pressure in the market.

Exports

Hopes of firmer prices rest on Irish live exports to destinations other than the UK keeping beef supplies tight.

So far this year, Ireland has shipped the equivalent to a whole extra week’s worth of cattle compared with last year.

New shipments have been sent to Israel, as well as continued shipments to Egypt and Turkey.

Europe started the year with 2.2% fewer calves than the year before.

Boats of calves destined for Dutch, Spanish and Italian farms, and other continental destinations, have taken 15% more (232,400-head) from Ireland.

Weanling exports are up nearly one-third to 15,609-head so far in 2023.

“Tightening cattle numbers across Europe are expected to contribute to steady demand for Irish cattle during 2023, with very positive feedback from customers on the quality, health status and performance of Irish animals when they reach their destination,” said Bord Bia’s Seamus McMenamin.

Eddie Punch, general secretary of the Irish Cattle and Sheep Farmers’ Association, said strong export activity was “positive” for beef prices currently coming under pressure in Ireland.

Mr Punch said an unseasonal price drop from 450p/kg to 440p/kg had been reported in Ireland in June, owing to retailer efforts to manage food price inflation.

Mid-summer typically sees prices lift when cattle are at grass, he added.

John Royle, NFU chief livestock adviser said higher volumes of Irish exports should support deadweight beef prices on both sides of the Irish Sea.

“We can genuinely say that the UK has higher standards than Australia and Ireland as we don’t do live exports here. I would hope this would resonate with UK consumers by choosing British beef.”