Higher beef prices predicted for this year as supplies tighten

TIGHTER cattle supplies across Britain and in Ireland will drive on beef prices in 2010, it was claimed yesterday.

It followed a meeting in Birmingham of the Irish Farmers’ Association, the National Farmers’ Union and the Ulster Farmers’ Union.

IFA livestock committee chairman Michael Doran said, based on the projections for tighter cattle supplies across England, Wales, Scotland, Northern Ireland and Ireland, and a continuing strong demand for beef, the beef price prospects for 2010 have to be positive.

He said cattle prices in Britain are ranging from €3.27 to €3.34/kg.

The high prices in Britain show the strength of demand for beef and the real scope for Irish factories to lift the base price of cattle substantially from the current level of €2.94/kg, he said.

Mr Doran said there is a very strong view among the British farmers unions and the IFA that grass-based livestock production must be fully protected and properly rewarded in the negotiations on the Common Agricultural Policy (CAP).

He said priorities include protecting the CAP budget and ensuring that the single farm payment is paid to active farmers.

IFA Sheep Committee chairman James Murphy said lamb prices have lifted significantly in both Britain and Ireland since Christmas.

Stressing that this price momentum must be maintained for 2010, he said lambs are making as high as €5.50/kg in Scotland.

Mr Murphy said the IFA and the NFU had a detailed discussion on proposals to secure additional EU funds for lamb promotion.

He also said all countries are encountering serious difficulties with the imposition of compulsory electronic identification (EID) on the sheep sector.

Meanwhile, the Irish Cattle and Sheep Farmers Association beef committee chairman Sean Scully said there is little change in the beef trade this week with prices for steers at €2.94/kg (£1.05/lb) and up to €3.00/kg (£1.07/lb) for in-spec cattle.

Mr Scully, who called on farmers to withhold cattle because of the current prices, accused processors and retailers of putting short-term greed ahead of long-term food security.