Beef price update: signs of bull throughput slowing

The beef trade is starting the week with a general base price of €3.60/kg for steers and €3.70/kg for heifers.

There are isolated deals negotiated at the top end of the market at a 5c/kg higher base, but this is mainly confined to specialist finishers or producers handling large numbers.

Bull trade

The bull trade remains depressed, with the only bright aspect being the likelihood of tighter numbers.

Many agents report the number of bulls finished in an under-16-month system starting to fall off, while others say they are past the glut of aged bulls.

This will hopefully help to provide some stability to a trade that has been hit extremely hard by consecutive price cuts.

Bulls aged less than 16 months are trading in general at a base of €3.50/kg to €3.55/kg, but as low as €3.45/kg has been quoted in plants with little appetite.

The average price reported for bulls over 16 months but less than 24 months is €3.50/kg for R grades and €3.60/kg for U grades.

There is the potential of a 5c/kg spread either side of this range, depending on the producer-processor relationship and the purchasing plant. Meanwhile, O grades range from €3.30/kg to €3.40/kg, with overage bulls falling back to €3/kg or lower.

Cow prices

Significant variation remains between cow prices.

P+3 grading cows range on average from €2.80/kg to €2.90/kg, while O grades are trading in the main from €2.95/kg to €3.00/kg.

R grading cows are typically trading from €3.10/kg to €3.20/kg, with heavy-carcase cows and young cows securing the higher prices.

Cow throughput is reported as steady following last week’s increase, with some producers keen to move cows amid an increased risk of mastitis.

Northern Ireland trade

There is no change in the trade in Northern Ireland, with producers continuing to face significant delays from booking to slaughter.

Base U-3 steer and heifer quotes are starting at £3.20/kg, which is the equivalent of €3.60/kg at 89.9p to the euro and €3.79/kg including VAT at 5.4%.

Many sellers are securing 2p/kg to 4p/kg higher, while prices at the top of the market range from £3.26/kg to £3.28/kg (€3.86/kg to €3.88/kg).