‘Low prices and export uncertainty have knock-on effect on beef trade’

Stable beef prices and strong live exports are vital for this autumn’s store and weanling trade, said Mr Burns, adding that it is critical for beef prices to stabilise so feeders have the confidence to buy cattle and feed.

“Feeders will be slow if they see factories continuing to pull back prices,” said Mr Burns. “The excessive and unjustified price cuts of recent weeks seriously damages confidence in the sector. Feeders need certainty and stability from the factories on prices. With a good burst in grass growth, demand will lift the trade.”

Mr Burns said the big hit the store and weaning price has taken from last year is a major problem for hard-pressed suckler farmers. He said the lift in prices in the last week was encouraging and badly needed.

He said the combination of significantly cheaper feed costs this year and a settling of the EU beef price should help lift the live trade for weanlings and stores for the second half of the year.

Live exports are up 74% at 142,842 head so far this year.

The big increases have been in calf exports, up more than 50,000 head on last year, with big increases to the Netherlands, Spain, Belgium, and France.

Weaning exports to Italy are back at 13,560 head but are expected to rise in the autumn. The store trade to the North is also back due to the strength of sterling and changes following the horsemeat scandal. However, to date this year, 21,317 cattle have gone to the North and a further 5,719 cattle have gone across the water to Britain.

Mr Burns said the IFA is continuing to work hard on opening up the live trade to the UK, with recent positive meetings with ferry companies, exporters, and UK buyers. He said that, with the UK beef price at the equivalent of €4.90/kg, there is massive demand and huge potential for the live trade to the UK.

He added that IFA work in reopening the Libyan market was paying dividends with 7,424 cattle and almost 22,000 lambs shipped to date this year. Exports to Tunisia have also been active, with 2,322 cattle shipped to date this year.