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The beef trade remains unchanged in the last few days.
Some factories continue to try and insert pressure on the trade by talking quotes down but their success is limited by firm demand and no real pressure on many farmers to move stock.
The reduced pressure is stemming in cases from producers prolonging having to re-enter the market for replacement stock, with mart prices holding strong. Others have no shortage of grass and are opting to feed on cattle where there is scope on age and weight/fat cover to do so.
This has left the majority of steers and heifers continuing to trade on a base of €4.05/kg and €4.15/kg respectively. There are small numbers trading at a 5c/kg lower base where farmers have less negotiating power and likewise there are still small numbers trading at a 5c/kg higher base at the top of the market.
Last week’s beef kill reduced by 279 head to 33,682. There were some differences within categories, with the heifer kill increasing from 8,619 to 9,078 head.
The increase was offset, however, by the bull kill reducing 787 head to 3,776. Steer throughput is largely unchanged, up about 120 head to 12,571, with cows reducing 84 head to 7,559.
The cow trade has also steadied after price reductions in previous weeks. Fleshed O grade cows are trading on average for €3.30/kg to €3.35/kg, with P+3 grades from €3.20/kg to €3.25/kg. Again, regular sellers handling significant numbers of 20 plus are capable of extracting more from the market, while R grades are selling in the main from €3.45/kg to €3.55/kg. A wide price difference between plants continues to be seen in the Department’s official price tables.
R grade bulls are trading in the main from €4.00/kg to €4.05/kg, with U grades from €4.10/kg to €4.15/kg. There are very few Friesian bulls in the market, with those that are generally in the hands of large-scale producers. Prices for O grade bulls range from €3.80/kg to €3.95/kg. Bulls less than 16 months old and trading on the grid are mainly being offered a base price of €4.00/kg, with some sellers trading at the top of the market securing 5c/kg higher.
NI trade
Northern plants are also trying to ease prices back. U-3 base quotes have dropped by 2p/kg to 4p/kg, ranging from £3.58/kg to £3.62/kg.
This equates to €4.31/kg to €4.35/kg at 87.7p to the euro and including 5.4% VAT. However, regular sellers continue to secure returns into the low- to mid-£3.60s.
O grading cows range from £2.65/kg to £2.75/kg or €3.18/kg to €3.31/kg, while R grading young bulls range from £3.60/kg to £3.65/kg (€4.33/kg to €4.39/kg).
British beef prices remain solid, with falling throughput helping to underpin keen demand. Prices have increased by 8p/kg to 10p/kg in the last two to three weeks, with R4L steers and heifers ranging from £3.76/kg to £3.78/kg (€4.52/kg to €4.54/kg).
30-month age limit
Farmers should be mindful of the 30-month age limit and review the age of finishing cattle. It may identify forward spring 2015-born animals to be pulled out for concentrate supplementation or faster drafting of slaughter-fit cattle. Losing out on the 12c/kg Quality Payment Scheme bonus is worth just shy of €40 on a 330kg carcase, so it is well worth the effort.
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