Cattle prices have reached a three-year high thanks to a range of factors including bird flu. A scarcity of supply, increased demand and partial bans on Latin American beef imports have driven prices upwards.
Beef farmers are achieving over €3/kg (107p lb) for middle quality stock from factories which are having problems finding enough stock.
Since farmers no longer have to keep previous levels of stock to qualify for EU supports, the number of cattle in the country has fallen.
In addition, the farming community received over €2.4 billion in support since Christmas, and can now afford to hold stock longer than in the past and do not have to sell when lack of grass or fodder forces them to do so.
In Europe, which is our main market for beef, there has been a growing demand for beef which is now well ahead of pre-BSE crisis levels in the mid 1990s.
Ireland has benefited both from the increased demand and from an EU ban on Latin American imports because of outbreaks of foot-and-mouth disease, particularly in Argentina.
EU Commission figures show that because of a decline in poultry consumption in many mainland European countries, there has been an increase in demand for beef and a huge increase in the demand for veal.
This has fuelled the calf trade to the Continent and the live export of calves for veal production has increased by 158 per cent since this time last year.
Last week the number of young calves exported to the Continent was 15,651 and this has given a tremendous boost to this trade.
So far this year, according to Irish Food Board figures released at the weekend, 251,878 cattle have been slaughtered in the State's export factories.
That represents, the Food Board said, a 26 per cent increase over the same period last year when 198,892 animals were slaughtered.
Of the kill so far this year, 110,000 were bullocks, just over 15,000 were bulls, 74,800 heifers and 48,211 cows. The number of cows slaughtered has shown a 42 per cent increase.
Meanwhile, Sweden reported its first case of Bovine Spongiform Encephalopathy (BSE) and the Netherlands said it had found its 82nd case. These new cases of BSE are turning up at a sensitive time for the British beef industry which is hoping for the 10 year ban on it exporting beef to be lifted. A decision is due to be taken by the EU's Food Chain and Animal Health Committee tomorrow and Wednesday.