The facts surrounding the current beef market do not suggest there is a collapse in price. The predominant fact is that the market is firm with strong prices both here and in the EU generally particularly for male cattle. Steer prices in Ireland have increased by 17% from 224 cent/kilo, 80p/lb, last November to 262 cent/kilo, 94p/lb, for week ending 17 February – the last week for which we have official figures. Cow prices, on average, have improved by 7% in the same period. However, prices for the very poor grade cows have disimproved in recent weeks. Overall, prices are satisfactory especially when account is also taken of increased direct payments for 2002 under Agenda 2000.
The factors underpinning the beef market is the strong demand in the UK because of the foot and mouth cull which has increased significantly that country's import requirements for 2002 and the increase in consumption in the EU which is reflected in increased demand.
I will continue to monitor the market to ensure that there is a satisfactory return to those producers operating in the beef sector. I am meeting with Commissioner Fischler this week and one of the items we will be discussing is the beef market and the appropriate supports to maintain prices.
