Consumer demand EU cattle prices under pressure
UK cattle prices have also been firm, although only as a result of weakening sterling. In euro terms, UK cattle prices have fallen by €0.23 per kg in three weeks.
(Bild: Imago Images / AAP)
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Reflecting the weakening sterling, both EU and Irish cattle prices have recorded increases in price over the last few weeks, when converted in sterling terms. EU up £0.23 per kg and Irish prices up £0.24 per kg over the last three weeks. It is a similar story for cow prices.
Industry reports from Ireland suggest prices are currently under downward pressure. Ireland exports a large proportion of its beef production, with around a third of those exports destined for the foodservice market. Foodservice across Europe has been closed due to coronavirus, impacting on demand. The move out of foodservice and some consumers suffering a loss of income is also pushing demand to shift from high value cuts towards mince and lower value cuts.
Ireland is receiving some pick-up in export demand from China resumed economic activity post-COVID-19, which should help to offset some of the lost European sales.
Beef exports from Ireland to the rest of Europe are expected to continue, although perhaps at a lower volume and with mince and lower value cuts making up the majority. This will be impacting on overall carcase values and be having a knock on effect on farmgate prices.