Heatwave drives beef prices higher as factories scramble for cattle

One unanswered question remains: where have all the cold store stocks gone, or were they ever really there?

The current heatwave is continuing to boost beef prices at the factories as supply fails to match demand and processors are being forced to pay more to keep operations running and fulfil orders.

Farm work during the fine weather and the general scarcity of cattle has resulted in supply falling to its lowest average weekly intake in years over the past few weeks, putting factories under unprecedented pressure to maintain throughput.

One unanswered question remains: where have all the cold store stocks gone, or were they ever really there?

There was considerable discussion about beef stocks in cold stores without a market when prices were being driven down in April and May, including claims in the Oireachtas that stores were packed "to their gills" and processors did not have customers for the beef.

Only weeks later, with weekly intake falling, some factories appear to be close to "panic" in their efforts to secure cattle, with fears within the industry that a factory shutdown could not be ruled out.

Base prices for steers and heifers have increased by a further 10c/kg, but considerably more is being paid by factories in areas where supply has become particularly tight, and competition for cattle has intensified.

Steers are working off a base of 650c/kg this week, with higher prices being secured through deals, including increased use of flat pricing to secure stock. Heifers are on a base of 660c/kg, with many suppliers reporting higher deals.

Cow prices have also strengthened, with R-grade cows making 645-650c/kg, while R-grade young bulls are making up to 670c/kg this week.

Department of Agriculture analysis of steer prices paid for the week ending July 5 shows that, against a national average base price of 685c/kg, including QA and other bonus payments, a number of factories paid average prices in excess of 700c/kg, with one averaging up to 720c/kg for R-grade steers.

Heifers are not performing quite as strongly, with a national average base price of 681c/kg for the week, while an average of up to 725c/kg was recorded for O-grade cattle at one plant.

Supply last week was up around 800 head on the previous week at 24,667 head, broadly in line with the same week last year. The kill included 8,559 steers, 6,787 heifers, 6,845 cows and 1,947 young bulls.

Year-to-date supply to the end of last week is down 85,766 head compared with the same period last year. Heifers account for the largest decline at 30,922 head, followed by cows at 28,551 head and steers at 22,875 head fewer than in 2025.