Beef producers have weathered negative price pressure from factories and continue to command similar prices to recent weeks. The majority of steers are trading on a base of €4.05/kg, while heifers are trading on a base of €4.15/kg.
Sellers with significant numbers on hand or greater negotiating power are having more success in securing a higher base for heifers in particular, with more reports of €4.20/kg paid at the higher end of the market.
This is being partly driven by tighter supplies, with last week’s heifer throughput falling from 8,224 head to 7,618.
Top prices for steers are €4.08/kg to €4.10/kg.
Bull throughput also continues to fall off, with last week’s throughput falling 421 head to 2,761.
Last week’s overall kill reduced 690 head to 31,424.
The majority of R and U grade bulls are selling for €4.05/kg and €4.15/kg respectively, with regular sellers with greater negotiating power securing 3c/kg to 5c/kg higher.
Bulls less than 16 months and trading on the grid are moving at a base price of €4.05/kg, with small numbers at a base of €4.08/kg to €4.10/kg.
Cow prices have strengthened by 5c/kg in some of the cow-specialist plants, with others holding quotes static.
P+3 grading cows continue to sell from €3.20/kg to over €3.30/kg, with O grades from €3.30/kg to €3.40/kg and 5c/kg higher in plants specialising in the cow trade.
R grades are selling from €3.45/kg to €3.55/kg, with heavy U grade cows still sought after and selling at the top of the market from €3.60/kg to over €3.70/kg.
British prices keep rising
British prices have maintained their gradual upward momentum, rising by 1p/kg to 2p/kg again in the last week. The AHDB reports average R4L steer and heifer prices now hitting £3.80/kg.
Sterling has been fluctuating in recent days and stood at 88.4p to the euro on Wednesday. This leaves British R4L prices averaging the equivalent of €4.53/kg including 5.4% VAT.
Northern producers have, in many cases, resisted an attempt by some plants to pull quotes by 2p/kg to 4p/kg.
Base entry quotes for U-3 steers and heifers are £3.60/kg (€4.29/kg), but regular sellers are still securing 2p/kg to 4p/kg higher.
Yearly comparison
Prices are running about 20c/kg ahead of the same period in 2016, with factories gaining the upper hand in the wake of the Brexit vote and easing prices 5c/kg to 10c/kg over a number of weeks.
The big difference this year has been strong market demand and a more balanced trade for all elements of the carcase.
Manufacturing beef in particular has benefited from lower supplies of beef on the global market and a recovery in demand from markets outside the UK and further afield than the EU (Philippines and Hong Kong).
Meanwhile, the latest Department of Agriculture live export figures show 2,468 bulls exported to Turkey in the week ending 6 July. This included 1,312 bulls aged from three to 12 months of age and 1,151 bulls aged between 12 and 21 months of age. Another boatload of heavier finishing bulls is set to be exported next week.
The shipment to Turkey boosted exports for the week to 4,142, with Spain importing 707 head (495 calves, 82 weanlings and 124 stores) and Italy 421 (248 calves, 92 weanlings, 63 stores and 18 animals over 21 months of age).
The other notable exports were 310 head exported north, of which 166 were destined for direct slaughter.