Beef Trends: more life in the beef trade

In-spec heifers have lifted in price this week, with €3.65/kg being paid in a lot of factories for heifers, while €3.60/kg is still buying a lot of steers, with some factories slower to move up quotes.

Bonuses of between 10c/kg and 15c/kg are still being paid on Hereford and Angus animals.

Bulls are a similar trade this week, with under-16-month bulls trading off €3.60/kg on the grid.

Older R grading bulls are at €3.50/kg to €3.55/kg, with U grades coming in on average 10c/kg higher at €3.60/kg to €3.65/kg.

Appetite for lesser-grading bulls is poor, with €3.40/kg to €3.50/kg being paid.

Cows are still in good demand, with P+3 cows trading at €2.90/kg to €3.00/kg.

O grading cows are genrally moving at €3.00/kg to €3.10/kg, with good R grading cows trading as high as €3.40/kg in some plants, depending on numbers and quality.

Beef kill

Last week’s kill was up 1,292 head on the previous week, with the biggest lift coming in cows, with 499 extra cows killed last week compared with the week before.

All categories of stock were up, with an extra 380 steers and 398 heifers killed last week.

The strong kill means that the 2020 kill is now just 7,062 head of cattle behind the 2019 kill.

If Bord Bia’s predictions of a reduction in the 2020 kill of 55,000 cattle are right, that means a big tightening in numbers between now and December.

Throw in on top of that increased exports of both slaughter-fit and forward store cattle to NI and a move away from young bulls, it should point to the price being closer to €4/kg come Christmas 2020.

Of course, the elephant in the room is Brexit and what implications that might have on our beef trade to the UK.

Housing stock

Agents are reporting that factory fit cattle have dried up in marts and this has moved factory agents back into farmers yards sourcing stock.

With housing taking place on some farms, it will push out supplies by another few weeks, so could mean a tightness in supplies in the short term.

Factories are tuned into this and I’m told factories are actively courting new suppliers and moving outside of traditional catchments to secure cattle for November and December kills.

I have had a few calls this week from farmers querying fat covers in some factories.

It’s really important to follow up with the factory straight away, ideally on the day that the cattle are killed.

Issues can occur on the line that affect the grading process and it’s important that farmers know that they can be looked into.

Querying a fat cover when the animal is gone through the boning hall is no good, so follow up straight away.

NI

Prices are in reverse gear in Northern Ireland, with plants cutting base quotes again this week.

The best quotes for U-3 grading steers and heifers is 358p/kg (€4.19/kg inc VAT).

Farmers with limited numbers are struggling to better this, as processors indicate greater availability of animals coming on the market.

More regular finishers are managing to secure prices of 364p to 366p/kg (€4.26 to €4.29/kg).

Demand for cull cows has hardened, with quotes rising 5p/kg to 280p/kg (€3.28/kg) for R3 grading animals, although prices are running upwards to 300p/kg (€3.51/kg).