As cattle prices continue to rise slowly because of renewed confidence in the market, Irish factories have won contracts to place 2,494 tonnes of beef in EU intervention stores over the next fortnight.
The tender, which will take more than 7,000 bullocks off the market, is lower than had been anticipated. It had been predicted that the factories would have to rely heavily on intervention at this time of the year.
However, demand for Irish beef is increasing and the factories are filling large contracts for the Russian and Egyptian markets in addition to meeting European needs.
There is a strong demand for cattle from the Republic by Northern Ireland factories and more than 800 animals a week are taken north. This has helped increase prices to producers.
The factories will be paying 84p per lb for animals for the intervention contract - an increase of 2p on the previous contract.
Yesterday, the Department of Agriculture invited applications from farmers seeking compensation for losses due to Green Pound revaluations on animals they slaughtered between April 1st, 1997, and June 10th, 1997.
Brussels has yet to approve this £20 million package. But the Department expects clearance and has invited applications before November 7th.