Farmers eye €8/kg for beef as factory prices keep climbing

'Beef is at the kind of price that just about nobody ever expected to be getting — an all-time record,' is the word on the ground.

Two months into 2025 and all previous records for beef prices have been completely blown out the window, and there is still no clear marker as to where it is going to peak.

Both producers and factory bosses concede that "no one expected the prices to be where they are so early in the year", and the upward movement continues without a cloud appearing in the blue sky over the trade.

As the base prices are increased by a further 5-10c/kg this week, there is demand for all of the stock that can be secured by the processing plants.

Breed bonus payments for both Angus and Hereford have been increased to 30c/kg and 25c/kg for pre-booked animals supplied over the coming months.

When added to the quality assurance bonus of 20c/kg and the continued strengthening base price, suppliers are eyeing the prospect of an €8/kg being not far away.

"Beef is at the kind of price that just about nobody ever expected to be getting — an all-time record," is the word on the ground.

The good news is that the background to the current trade seems positive. Producers at a recent Irish Hereford Prime event were told by Bord Bia that there is a significant shortage of cattle across Europe, and the EU is measuring the outcome at a 1% decline in beef production, but it is likely to be higher.

The factory-reported prices paid to producers for the week ending February 22 — the week before last  and analysed by the Department of Agriculture show €7/kg was exceeded for quality R-grade heifers at some of the processors, and the steer prices were not far behind.

However, it appears the variation in price being paid is widening, partly driven by the demand for more stock at some of the factories and harder selling by producers with larger numbers to offer to the factories.

In general, the base for steers this week is at 645-650c/kg, with reported deals at up to 660c/kg. The heifers are on a general base of about 655c/kg, with deals of up to 665c/kg and some reported transactions returning up to 670c/kg.

This week, the R-grade young bulls are making up to 655-660c/kg, and R-grade cows are worth 635-645c/kg.

While the prices continue to rise week on week, the finishers appear to be moving out stock at a steady pace.

The supply to the factories for last week was 39,211 head, the second-highest year-to-date weekly intake. The kill for the week included 14,186 steers, 12,807 heifers, 8,935 cows, and 2,303 young bulls.