Supply tightens amid Brazil beef ban

Marts: The timing and outcome of inspection of beef-producing farms in Brazil by the EU Food and Veterinary Organisation holds one of the critical keys to the impact of the ban on delivering higher returns to producers in this country.

It is now expected that the FVO inspection mission in Brazil will not take place until near the end of February, following which they will have to submit their report for consideration by the EU authorities before any decision on the lifting of the ban is made.

This could mean mid-March at the earliest before exports from Brazil resume, but industry sources maintain that supplies which had left Brazil before the ban took effect last Friday will continue to supply EU markets over the coming weeks.

This message from the processors is not being taken too seriously by producers who have tightened supplies to the plants this week, putting the factories under pressure and creating an opportunity for producers to secure further increases in prices being paid, which has seen returns heading upwards.

IFA National Livestock Committee Chairman, Michael Doran encouraged farmers to demand a base of 336 cents/kg (120p/lb) as supply tightens, pointing out that factories have paid prices equivalent to 350c/kg to 370c/kg for finished cattle at fat stock sales depending on kill out. He said cattle prices must continue to rise to cover the significantly higher feed and fertiliser costs which producers have to meet this year.

Some of the factories are paying up to 336c/kg (120p/lb) for quality R grade heifers this week while similar grade bullocks are being bought for up to 327c/kg (117p/lb) as the second consecutive week of tightening supply is being felt by processors.

Meanwhile there is one factory fewer in operation this week with the exit of Slaney Meats (Bagenalstown). Slaughtering at the plant ended last Thursday with operations centralised at Slaney’s plant at Bunclody.