Beef Trends: quotes increase as supplies tighten

Factories have increased their beef quotes for the second week in a row, with supplies of prime cattle tightening a lot in the last week.

Irish Farmers Journal analysis of the weekly kill shows the prime cattle has fallen by a massive 5,000 head in the last five weeks.

Record weekly cow kills of almost 11,000 cows have camouflaged the fact that prime cattle are in very short supply.

Last week’s kill came in at 38,463 head, a reduction of 1,400 head on the previous week. The prime cattle kill excluding cows dropped to 27,670 head last week.

Lift

Bullocks have taken a 5c to 10c/kg lift on Monday morning, as base quotes now range from €4.65/kg to €4.85/kg, with the higher end of quotes going to regular suppliers dealing with bigger numbers.

Heifers have also seen a lift in price, with most processors working off a base of between €4.70/kg and €4.90/kg, with talk of possibly more on offer for the beginning of next week.

Supplies of finished cattle have really tightened up in the last 10 days and this has coincided with a lift in demand, which means factories have been left with no choice but to increase quotes to get cattle.

Offers of free transport, increased breed bonuses and no weight limits on heavy cattle have also come back on to the table in a bid to lure more cattle into lairages.

Young bulls

Young bull quotes have also improved, with some processors lifting their bull quotes by as much as 20c/kg on last week.

U grading under-24-month bulls are being quoted from €4.90/kg to €5.00/kg in factories this week, with R grading bulls coming in at €4.80/kg to €4.90/kg depending on numbers and type of bulls involved.

O grading bulls are coming in at €4.60/kg to €4.80/kg.

Under-16-month bulls are working off €4.60/kg to €4.70/kg on the grid.

Cows

Cows have also seen a lift in price, with wholesalers and factory agents back around mart rings picking up any cows that are factory fit.

The manufacturing trade continues to perform very strongly and this has meant there is good appetite for good-quality cows. A record kill of cows and a stable cow price tells its own story.

U and R grading suckler cows are being quoted at €4.40/kg to €4.55/kg this week, with more being paid by specialised operators for the right type of young cow.

O grading cows are being quoted at €4.30/kg to €4.35/kg, with more being added when pressure is applied.

P grading dairy cows are still a little harder sold, with flesh cover and weight being the main determinant of price paid.

Well-covered P grading cows are being sold for up to €3.90/kg to €4.00/kg, with poorer, lighter cows lacking flesh being bought as low as €3.20/kg.

British prices

Beef quotes across the water in Britain continue to improve, with R4L heifers coming in at €5.59/kg last week, with the Scottish heifer price coming in at €5.65/kg last week.

Supplies of finished cattle remain tight across the water and in the middle of the peak Christmas demand.

Farmers are being advised to dig in hard over the next three weeks as supplies of finished cattle continue to contract.

NI comment

Prime cattle prices are slowly edging upwards as processors remain keen to lock in numbers. Base quotes remain on 428p/kg (€5.19/kg inc VAT) for U-3 grading animals, but this bears little resemblance to the price deals being paid for cattle.

Steers are moving at 442p/kg (€5.35/kg) with heifers on 446p to 450p/kg (€5.40 to €5.45/kg). Deals on transport are being offered to keep a lid on prices. Cows are an improved trade with R3 animals on 360p to 370p/kg (€4.36 to €4.48/kg).