The beef trade remains in a steady position this week, with both factory demand and cattle supply tentatively poised in a good place.

Factories have reduced the pressure to get quotes under €4.80/kg, with a lot of factories buying cattle at similar quotes to what was being paid last week.

Bullocks are generally being bought at €4.80/kg, with €4.85/kg also being paid for farmers dealing with bigger numbers.

Some regular customers have also managed to squeeze a little extra when pressure is applied.

Heifers are working off €4.85/kg in the main, with a few €4.90/kg quotes going to bigger suppliers.

Aberdeen Angus and Hereford bullocks and heifers are still being sought by agents, with an Aberdeen Angus bonus of between 20c and 25c/kg being paid on suitable in-spec cattle.

A Hereford bonus of between 10c and 15c/kg is also available on suitable in-spec cattle.

Cow prices

R and U grading cows range in price from €4.80/kg to €4.90/kg.

O grading cows are back at €4.60/kg to €4.70/kg, while there is a wide range in what is being quoted for P grading cows, with anything from €4.30/kg to €4.50/kg being quoted depending on weight and flesh cover.

Some exceptional prices are still being paid in marts by factory agents, so farmers with small numbers are advised to weigh up their options for a mart sale as opposed to a factory slaughter.

Factory agents have been given instructions to hoover up any cows in their area. It’s hard to believe that this week’s price of €4.50/kg for a P+ Friesian bullock is at a similar quote to a P+ cow in some factories.

Bull trade

The bull trade is also steady, with €4.80/kg being paid for under-24-month bulls.

Some specialised bull finishers have been able to squeeze €4.95/kg for bulls this week, with O grading bulls working off €4.60/kg to €4.70/kg.

Bigger finishers have also been able to hammer out deals at €5/kg for U grading bulls.

Black and white P grading dairy bulls are being quoted at €4.50/kg to €4.55/kg.

Last week’s kill remained stable at 34,778, up just over 200 head on the previous week’s kill.

Looking at the Bord Bia beef price tracker, the Irish prime composite price remains 19c/kg behind the EU composite.

Winter finishing

Talking to some winter finishers this week, many are becoming increasingly frustrated at the lack of engagement with factories on winter beef price, with some factories even refusing to meet finishers saying that there is nothing they can do on price guarantees.

Doing simple sums on under-16-month autumn bulls being bought at 450kg at €3/kg means a €1,400/head outlay on day one.

Adding in 1.4t of meal at €450/t is €630/head. Vet, haulage, killing costs, straw, silage and fixed costs will easily come into €250/head, which leaves a breakeven price of €2,280/head required.

If you build in a €100 margin, which is small based on the investment and risk taken, a beef price of €5.95/kg will be required at Christmas for these finishers to get out with their shirt on their back.

Northern comment

The beef trade is steady in Northern Ireland, with the best quotes holding at 430p/kg (€5.40/kg inc VAT) for U-3 grading animals.

Prime steers are moving around 440p/kg (€5.52/kg) with regular finishers securing slightly above this level.

In-spec heifers are opening on 442p/kg (€5.55/kg), with higher prices for bigger numbers.