Consumers to Pay More for Beef!

Consumers to Pay More for Beef!

Since last year, beef prices in the EU have been on the rise, showing no signs of slowing down. We now have a 100% increase in the price paid to farmers over the last few years. Here are several factors contributing to the increasing production costs of EU beef:

1. Declining Herd Numbers: Many farmers across the EU are reducing their herd sizes due to escalating costs, new green environmental policies, and diminished subsidies.
2. Expensive Feed: The EU lacks sufficient grain and soy production for animal feed, leading to reliance on imports, which makes feed prices unstable. For instance, 45% of Ireland’s grain was imported from Ukraine, but the ongoing war has halted this supply and caused prices to surge from other countries.
3. Labour Costs: High wages in Europe are a norm, and there’s a growing scarcity of skilled labour in both agriculture and production facilities.
4. Energy & Transport Costs: The entire supply chain, from farms to processing plants and distribution, is impacted by soaring fuel and energy prices.

With fewer cattle in Ireland and a robust export market, the resulting scarcity has led to significant price hikes.

Price hikes are now evident on the shelves of butchers and supermarkets.

GraphSource- Bord Bia