Cattle prices have received a major boost over the last fortnight as a series of events have pushed up the prices farmers are receiving by over 12 cent a kg.
The ban on the import of Brazilian beef to the EU because of an outbreak of foot-and-mouth, consumer fallout from the avian flu scare and good weather are some of the components which have given the trade a boost.
Yesterday, prices swept over the baseline figure of 254 cent per kg.
This came as An Bord Bia, the Irish Food Board, reported a surge in demand for Irish beef at home and across the markets where it recently launched its €10 million, three-year European beef promotion campaign.
In its weekly market report it said that the increases in prices being paid for cattle was being driven by lower available supplies and better demand from the market.
"Supplies are generally tight across the EU. Last week's throughput at Irish export plants was 34,900 head, which was down 3,000 on the previous week," said the report.
"Trade to most markets is reported to be strong at the moment. Bord Bia's autumn promotions which are continuing around Europe are also having a positive effect with a good response to the on-pack offers boosting sales," added the report.
However, Mr Cormac Healy of Meat Industry Ireland, cautioned that the partial ban on Brazilian beef entering the EU market could lead to a short term fall on international beef prices.
"There is a lot of beef from Brazil still in the pipeline because the ban only hits beef processed after September 30th," he said.
"There are indications that some European importers are attempting to sell off at a much cheaper price the beef they have already ordered from Brazil," he said.
He conceded, however, that there was a shortage of finished animals available here and this had pushed up the prices which the factories were paying to farmers.
He added that the mild weather for this time of year had also allowed farmers hold on to their stock longer than they might have if the weather was poorer.
Mr Healy said that the banning of what amounted to 60 per cent of Brazil's beef exports to what now amounted to 30 countries, including Russia, could present opportunities to Irish beef exporters, depending on how long the ban was imposed.
The Food Board reported that some retailers in the Netherlands - where the Irish promotion was launched 10 days ago - will probably be seeking to buy more Irish beef. This is because some of them had planned promotions on all cuts of beef and the lack of Brazilian supplies therefore augured well for Irish products.
Finally, consumption of poultry particularly in Germany and Italy, are reported to have dropped because of the avian flu scare and this is expected to boost beef sales there.
