Beef Trends: factories still hungry for Christmas beef

Factories remain very active for supplies in the run-up to the festive season, with plans for the Christmas week kill being put in place in several processors.

Some factories are planning to kill right up to 23 December such is the demand. Some of these factories will also start killing again on 27 December.

Beef quotes for bullocks are working off €5.45/kg to €5.50/kg, while heifers are coming in at €5.50/kg to €5.55/kg.

There have been cases of prices over this being paid, with €5.60/kg available to some farmers dealing in bigger numbers.

When all factory, in-spec and breed bonuses are paid, it means some farmers are getting as high as €6.15/kg for Angus heifers this week.

Flat deals of as high as €6.10/kg are also being done for bigger loads of continental heifers. Flat deals outside of factory group bonuses are being done at €6/kg this week.

Cows

Well-fleshed cows are in big demand, with the manufacturing beef trade continuing on a very strong footing.

Quotes are increasing by the day for cows, with huge appetite out there for well-fleshed heavy cows.

O+ suckler cows are generally working off €5.10/kg to €5.20/kg, while O grading dairy cows are being bought at €5.00/kg to €5.05/kg, depending on which factory you are dealing with.

R grading cows are being quoted at €5.25/kg to €5.35/kg and higher money is available where numbers are involved.

P+3 cows are working off €4.80/kg to €4.90/kg, depending on weight, age and flesh.

Well-fleshed U grading cows continue to command top prices of €5.50/kg to €5.60/kg and over for young, fleshed heavy cows.

Bulls

Under-24-month bulls are still working off a €5.70/kg to €5.90/kg base price for U grading bulls and higher where larger numbers are involved. I have heard of a farmer getting €6/kg flat for a big number.

R grading bulls are coming in at €5.60/kg to €5.70/kg, while O grading bulls are being bought at €5.35/kg to €5.45/kg.

P grading bulls are working off €5.25/kg to €5.30/kg, depending on weight and flesh cover.

Under-16-month bulls are generally working off €5.30/kg to €5.40/kg base price before the additional in-spec bonus is applied.

Last week’s kill remained at 39,497 head, a similar number to the previous week.

While numbers remain high, carcase weights remain an issue for factories, with some very light dairy-cross carcases being processed.

The bull kill remains firm at 2,441 head. Last week’s bullock kill fell another 500 head, with the heifer kill coming in over 300 head lower than the previous week.

The cow kill went up again by 600 head on the back of strong manufacturing beef demand.

IFA livestock chair Declan Hanrahan said: “The beef trade continues on a very strong footing, with good demand and short supply. Factories have been paying more than quoted prices and the advice to farmers is to bargain hard when selling.”

Across the water, the trade shows no signs of slowing down. In-spec R4L bullocks jumped 8p/kg last week to come in at £5.50p/kg (€7.00/kg incl/VAT).

Demand is strong and supplies are tight, forcing British processors to increase quotes to get cattle.

NI comment

Official quotes are up 2p/kg at NI plants to reach an all-time high of 500p/kg (€6.31/kg) for U-3 grading animals, although that falls short of the deals on offer.

Steers and heifers are making 516p to 520p/kg (€6.52 to €6.57/kg) for in-spec animals, with young bulls on 510p/kg(€6.44/kg). Cull cows are making 400p to 420p/kg (€5.05 to €5.30/kg).