Beef trends: firm appetite edging prices upwards

Agents are trying hard to keep a lid on prices paid to sellers handling smaller numbers but are resigned to the fact that the balance of power with producers handling significant numbers lies firmly on the side of the producer. Demand has intensified in particular for heifers, with regular sellers trading at the higher end of the market pushing for a base price of €3.78/kg to €3.80/kg. Those with significant numbers on hand are now easily securing a base of €3.75/kg, while base entry quotes have lifted from €3.65/kg to €3.70/kg.

Steers are trading in the main on a base of €3.70/kg but such is demand for heifers that sellers with mixed batches are securing a base of €3.75/kg for steers and heifers. The tightness in heifer supplies is reflected in recent weeks’ kill figures where heifer throughput fell from 10,242 head to 8,952 head last week.

Total throughput reduced by 391 head to 35,367. This represents an increase of 561 head on the corresponding week in 2019 but factories are more than happy to handle higher numbers. The kill was underpinned by steer throughput increasing by 1,573 head to its highest level for the year of 15,119 head.

The higher number of steers is stemming from a sharp drop-off in young bull throughput.

The young bull kill fell by 457 head again last week and at 1,869 bulls it is 2,132 head lower than the corresponding week in 2019. This is adding competition to the young bull trade, with factories keen to increase their beef intake volume.

U grading bulls are trading in the main from €3.65/kg to €3.75/kg, with R grading bulls from €3.55/kg to €3.60/kg. There are flat-priced deals being completed at €3.70/kg for batches comprising mainly U grading bulls. O grading bulls are selling in a wide differential from €3.40/kg to €3.55/kg, with some regular sellers securing 5c/kg higher for O+ grading continental bulls.

The cow kill has also reduced back from 9,524 to 8,544 head. There is a significant variation in prices reported with a price differential of 15c/kg to 20c/kg commonplace between sellers handling smaller numbers and those trading at the higher end of the market.

P+3 grades are hitting €3/kg in an increasing number of plants. Quotes are ranging from €2.90/kg to as high as €3.10/kg when traded with larger batches of cows. O grades range from €3.00/kg to €3.15/kg on average while R grades are recording a price range from €3.20/kg to €3.30/kg on average but as high as €3.40/kg is being paid in plants specialising in the cow trade for top-quality lots.

Slaughter performance

The growing influence of an expanding dairy herd is starting to show more. The slaughter performance in recent weeks shows that O and P grading cattle are making up almost two-thirds of the steer and heifer kill. The kill breakdown for a fortnight ago showed 53% of steers grading O and over 12% grading P. This compares to 27% R grades and almost 7% U grades.

The trend for heifers is more balanced between O (43%) and R grades (41%), with about 10% U grades and shy of 5% grading P. Carcase weights on the steer side are higher than expected for the week. O grading steers ranged from 325kg for O- cattle to 351kg for O+ grades, while R-, R= and R+ steers averaged 369kg, 387kg and 406kg. P grades ranged from 277kg to 299kg.

Heifers recorded a similar trend with R-,R= and R+ weighing 312kg, 331kg and 331kg respectively while U grades averaged 353kg, 368kg and 382kg for the three subclasses. O-, O= and O+ grading heifers averaged 279kg, 285kg and 296kg, respectively.