Competition among processors drives cattle prices higher

The ongoing shortage of finished cattle in Ireland is expected to continue into 2026, significantly impacting market dynamics and pricing. This situation has been driven by increased live exports and earlier slaughtering practices, which have contributed to a reduced national herd size.

Background and Context

The Irish cattle industry is currently facing a critical shortage, with the national herd decreasing by 3.8% over the past year, equating to a loss of over 276,000 cattle. This decline is largely attributed to policy-driven challenges that have made cattle farming increasingly difficult. The Irish Cattle and Sheep Farmers' Association (ICSA) has raised concerns about the sustainability of current trends, warning that the decline could worsen if no corrective measures are taken.

Market Implications

The reduced supply of cattle has intensified competition among processing plants, driving up prices. Steers are currently priced between € 7.50-7.60/kg, while heifers range from 7.60-7.70/kg. The demand for young bulls remains strong, with R grade bulls fetching up to 7.60 /kg. In the live market, prices are even more competitive, with some continental bullocks selling for as much as € 5.23/kg.

The shortage is also impacting the broader market, with smaller processors potentially facing financial pressure due to reduced throughput. This could lead to decreased competition and weaker prices for farmers, a scenario that industry leaders are keen to avoid.

Policy and Future Outlook

ICSA Beef Chair John Cleary has highlighted the urgent need for policy intervention to restore confidence among farmers. He notes that the current policy environment is discouraging cattle farming, with younger farmers particularly hesitant to enter the industry. Cleary warns that without action, the decline in the national herd could become irreversible, threatening the viability of rural economies.

In conclusion, the cattle shortage in Ireland is a pressing issue with significant implications for the industry. Immediate policy adjustments are necessary to stabilise the market and ensure the sustainability of cattle farming in the country.

Source I | Source II

Looking for deeper insights in Beef pricing?
Visit our Market Data page for structured beef pricing, supply trends, and weekly updates across Europe.