Beef factories continue their offensive manoeuvres to try to ease beef prices back. However, they are not getting their own way and their efforts in reducing quotes by 5c/kg to 10c/kg are reaping varying levels of success.

Specialist finishers and those handling significant numbers are rebuffing factory price pressure and continuing to extract higher prices from the market.

This has left many plants agreeing to continue to operate at last week’s prices, but still signalling a message that prices will be reduced over the coming week.

Specialist finishers and feedlot cattle continue to make up a significant percentage of the kill, with numbers of grass-finished cattle rising steadily.

Some producers with lower negotiating power are accepting 5c/kg lower prices, with base quotes for bullocks ranging in the main from €5.20/kg to €5.25/kg.

Heifer quotes range from €5.30/kg to €5.35/kg, with some plants trying to open deals this week at €5.25/kg, but quickly offering another 5c/kg to close deals.

Producers handling large numbers continue to have significant success in securing allowances on transport costs, where applicable, and also in getting any potential cuts on carcase weight or stock deemed out of spec wavered.

Last week’s kill was recorded at 30,112 head, down 1,308 cattle on the week. A day’s less processing did have an influence, but plants are also working well below capacity at present.

The bullock kill of 9,650 head dropped by 808 and fell below the 10,000 mark for only the third time this year. Heifer throughput of 8,016 head was similar, as was cow throughput of 8,714 head.

The strong cow kill reflects the ongoing firm appetite for cows.

U grading cows are topping the €5/kg mark, with those handling significant numbers securing an extra 10c/kg to 15c/kg. There is a differential of anywhere from 10c/kg to 30c/kg between what some factories and those active in the wholesale trade are paying.

Marts remain a good outlet for those struggling to compete on price.

R grading cows are trading from €4.80/kg to €5.00/kg, while O grading cows are selling from €4.70/kg to €4.85/kg, with numbers again influencing prices paid.

Good-quality P+3 grading cows continue to top €4.70/kg, with some sellers continuing to trade these cows for higher where marketed in mixed lots of O and R grading cows.

The bull kill has been recorded at an average of 3,175 head for the last five weeks. This is not surprising, with bulls finished under 16 months of age boosting throughput levels. Base quotes offered range anywhere from €5.15/kg to €5.30/kg.

Under-24-month R and U grading bulls are trading from €5.30/kg to €5.40/kg and €5.40/kg to €5.50/kg respectively, with higher prices paid to those handling big numbers. O grading bulls are trading from €5.20/kg to €5.30/kg.

The number of cattle slaughtered to date in 2022 has surpassed the 800,000 head mark, with throughput of 801,119 running some 82,807 higher than the corresponding period in 2021.

When the additional 7,368 calves are omitted from this, there is in the region of 75,000 more animals gone through the system, similar to industry forecasts for the full year.

Northern trade

Factories in Northern Ireland are trying to cool the trade with opening base quotes at £4.30/kg (€4.98/kg VAT exclusive), but there is no cattle moving at this level, with most deals ranging between £4.40/kg and £4.50/kg (€5.09/kg to €5.20).

Young bulls continue to trade in the region of £4.30/kg to £4.40/kg.

The latest AHDB price report shows R4L bullock and heifer prices averaging in the region of £4.45/kg and £4.50/kg respectively. O grading cows are averaging around £3.80/kg, with R grading young bulls around the £4.40/kg mark.