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BEEF PRICES MUST REACH €5/KG TO OFFSET HUGE INCREASE IN COST OF INPUTS

Oct 12, 2021 | Latest News, Press Releases | 0 comments

ICSA beef chair Edmund Graham has said the spiralling costs of inputs means that beef prices will need to move to €5/kg quickly. “Prices for key inputs involved in the production of beef are going through the roof and showing no signs of easing up. Processors and retailers need to face this reality, and that means by early 2022 factory prices are going to have to be least €5kg, and retailers will need to reflect this also,” he said.

“Pressure from increased costs is coming from every angle. With the cost of fertiliser predicted to double, and fuel and feed prices going up and up the only chance we have is for prices to increase in line with these increased input costs.”

“Teagasc too have said winter finishers will need over €5/kg to secure some margin of a profit come the spring. I would argue that even at €5/kg we will be lucky to break even given the alarming rate at which our costs are rising. Indeed, the Teagasc costings factored in finisher ration meal at €300/t, however, more recent quotes suggest prices of around €327/t and rising.”

“Beef prices in the UK are still significantly higher than here in the Republic. Currently the price differential stands at €0.70c/kg and this gap has been widening since July. It is becoming more and more unrealistic to expect beef finishers to feed cattle from mid-November onwards unless this unjustifiable price gap is closed, and prices here move to the €5/kg plus mark.”

ENDS

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