With the kill back below 34,000 last week and a good demand for beef, factories are having to work hard to get supplies to fill orders.
The demand for cattle isn’t being reflected in prices paid to farmers, with €4.05/kg on steers and €4.15/kg on heifers the going rate for the vast majority of deals.
We are still getting reports of 5c/kg more on both steers and heifers, but these are the exception and involve good numbers of perfect in-spec cattle. Similarly, there are factories that will try to buy at €4.00/kg and €4.10/kg on heifers, but they are having little success.
The cow trade continues strong, particularly in the factories with a focus on cows, whereas the factories that aren’t really active in this market are paying considerably less for cows that land with them. Where cows are being actively bought, prices are at €3.40/kg on P grading cows, €3.50/kg on O grading cows and R grading cows at €3.50/kg. Where there are a number of really good cows on offer, these prices can be pushed by 5c/kg, even 10c/kg in isolated examples, and €3.70/kg is achievable for top U grading cows where they exist.
On the other hand, where individual cows are dropped off without negotiation at non-cow-killing plants, prices as low as €3.25/kg are being paid for P grades, €3.35/kg for O grades and even R grades can get as low as €3.45/kg. The rule with cows is to make sure they are sold in factories that are active in that trade, as a there is a big variance across the country.
Young bulls bought on the grid are following the pattern of steers, with €4.05/kg the going rate, though some factories are trying to buy at €4.00/kg, but without much success. Where there are older bulls, these are usually for specific contracts and prices at €4.00/kg on Rs and €4.10/kg on Us don’t reflect an open market value.
Although prices have slipped, the overall beef market throughout Britain and Europe remains strong. The other point being made by agents is that they are looking at cattle on grass that aren’t ready and won’t be for a few weeks yet. The sterling to euro exchange rate has been variable, going as far as 88.7p to the euro on Wednesday, having been below 88p earlier in the week.
However, the prime beef kill in Britain was well down last week by over 10% on steers and almost 7% on heifers. Tighter numbers of cattle there should help Irish beef sell, especially as prices have been moving up as well.
IFA livestock chair Angus Woods said the lower quotes offered by meat factories this week are not reflective of the strong market sentiment that exists in the UK and EU beef markets and farmers should strongly resist the lower unjustified quotes on offer.
Northern Ireland and Britain
Prices steadied in the North last week, with reported steer prices back 1p/kg to £3.68/kg (€4.17/kg) excluding VAT, whereas heifers were steady at £3.68/kg (€4.17/kg) excluding VAT.
Prime cattle quotes for next week are £3.62/kg (€4.31/kg) to £3.66/kg (€4.36/kg), but more, up to 10p (11c), is available, particularly for heifers. Cows are being quoted at £2.90/kg (€3.45/kg) and there are numbers available.
Britain
In Britain, steer numbers fell by over 10% last week and prices moves up 5p/kg (6c/kg) to £3.75/kg (€4.25/kg) for R3 steers.
Heifers remained steady on £3.75/kg (€4.25/kg) for R3 grades, just 1p/kg up on the previous week, even though numbers killed were down.