Price rises allow investment in beef future

The recent rise in finished beef prices has brought some welcome relief to many producers, but there's no time to relax if businesses are to remain viable into the future. Prices may be over 230p/kg deadweight, compared to around 210p a year ago and just 195p in 2006, but it's vital the industry reacts positively to these improvements to drive efficiency forwards.

Import restrictions on Brazilian beef into Europe have combined with the Sterling:Euro exchange rate - making Irish beef expensive – to push home-market prices upwards. Boning halls in Europe that usually process Brazilian beef are also buying more from the UK, fuelling the export trade at a time of year which normally sees beef prices slump ahead of the summer BBQ season.

"Although some of this price increase will already be accounted for by increased feed costs, they still offer an opportunity to tackle some restructuring within production systems," highlights KW nutritionist Dr Richard Wynn. "Just like in the dairy sector, these upswings in the market can mean a good chance to invest in the future, adjusting systems and adapting to the new shape the industry is taking."

The increased volatility and general rise in costs within the feed sector is the perfect example of these changes, which are affecting all livestock producers. What's needed are flexible feeding systems that allow moist co-products to be used one year, dry co-products the next or liquid feeds in another, for example.

"The aim has to be to achieve the best balance between feed costs and performance in every situation," continues Dr Wynn. "It could mean creating additional feed storage space, extra clamps for more home-grown forage or altering buildings to allow more flexible feeding.

"Facing up to such challenges is always hard, but for those looking to stay with beef production long-term, it's likely to be worth doing," he adds.