2021: An exceptional year on all counts - including beef prices

Eight Hereford-cross bullocks born March '21 with an average weight of 230kg sold for €580 each at a sale in Corrin Mart, Fermoy, earlier this month. Picture: O'Gorman Photography.

Into the final days of 2021, the year will be remembered by livestock farmers for the strength of market prices throughout a year, which began with serious concern of a possible downturn in the trade.

January 1, 2021, marked the end of the UK’s transition period from the EU, with serious concerns for the future of a market that accounted for around 52% of Irish beef exports.

Producers were relying on the prediction of a drop of up to 120,000 head in expected supplies for the processors to have some beneficial effect in maintaining prices.

The cattle supply fell by one third less to a deficit of just over 80,000 head compared to 2020, market demand exceeded all expectations, and average prices returned to suppliers banished the predictions of doom.

To mid-December, the drop in heifers supplied to the factories accounted for close to half the total drop for the year. Heifers were down by 33,797 head. Steers were down by 16,261 head. There were 9,260 fewer young bulls supplied and the intake of cows was down by 8,730.

While the average prices were among the strongest ever, it remained of concern to producers that Irish prices continued to trail prices for the comparative cattle in the UK. To mid-December, the average Irish price for an R3 steer was €4.05/kg, slightly better than the EU average of €3.90, while trailing the UK price of €4.66, leaving a difference of more than €200/head in the typical 350kg carcase.

Compared to the 2020 average, the 2021 Irish R3 steer price was up 42c/kg, the EU average was stronger by 37c/kg, and the UK price was improved by 64c/kg.

The current year Irish price for steers is also up by 45c/kg on 2019 prices — the EU is 29c/kg higher and the UK price is 77c/kg higher.

The quoted prices are exclusive of Vat, which is applicable to prices paid to Irish suppliers at a flat rate of 5.6%.

There were a total of 239,847 live cattle exported out of Ireland for the first 47 weeks of 2021, which represents a small decline of seven per cent in the same period in 2020.

With strong cattle prices on the domestic market, it has been more difficult for Irish cattle to compete in key export markets. Over recent weeks, the number of cattle exported has generally trended below year-earlier levels, and these are dominated by movements of store and finished animals to Northern Ireland.

Live exports to the end of November were 239,846 head, a drop of 4.4% on 2020. While exports to Northern Ireland increased by 20.5% to 57,498 head, and sales to Italy were up by 35.4%, exports to the main continental markets were down.

Exports to Belgium dropped by 53.4%, exports to France fell by 17.5%, sales to Spain were back by 8.7%, and post-Brexit, exports to Britain were down by 37%. There was also a sharp decline of 58% in exports to third country markets.

Calf exports were almost on par with 2020 at 140,288 head, a decline of 1.6%. Weanling exports fell by 36.1%, while the live export of finished cattle increased by 6.1%.