Ireland Brexit shows influence
In the wake of the Brexit vote, Purcell said the company forward bought cattle to ease fears in regards to the falling value of Sterling. But, he said that he did not envisage the Sterling collapse to be so dramatic and as a result Irish organic cattle prices have come under pressure in recent weeks, with prices falling back to 455c/kg this week.
However, this price is almost €1/kg higher than conventional steer prices. Looking at the positives, he also pointed that 20% of the organic beef handled by the processor is sold onto the domestic Irish market.
While the remainder is sold Nordic regions, France, Holland and Belgium. Purcell also said that the organic beef produced on Irish farms competes with beef from Poland, Germany and Spain. But he added that the Irish system has an unique advantage as it focuses on steer and heifer carcasses, whereas Polish producers specialise in organic bull beef.