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Negative beef price pressure remains the focus of discussions on the beef trade. The majority of cattle processed today and a significant percentage of tomorrow’s kill have been traded at a base of €3.85/kg for steers and €3.95/kg for heifers.
However, factories are attempting to reduce base steer prices to €3.80/kg and heifers to €3.90/kg for cattle purchased from today onwards. The success of this is variable, with factories purchasing cattle in the west helped in negotiations by deteriorating ground conditions. Farmers in the east are having more success in resisting the price pressure, with scope to still compete deals 5c/kg higher.
The best opportunity, in cases, is in independent plants. Demand still remains strong overall, with no backlog in getting cattle killed, with plants generally accepting cattle after a couple of days of booking.
Bull prices are facing the same price pressure as steers and heifers. R grade bulls are selling in small numbers from €3.80/kg with top prices of €3.90/kg. U grade bulls are selling from €3.90/kg to €3.95/kg, with specialist finishers having the best success in negotiations. Bulls less than 16 months and trading on the grid are being offered a base of €3.80/kg to €3.85/kg. This excludes the 12c/kg quality payment scheme bonus.
Ministerial intervention
The IFA is calling on Minister Creed to intervene in the beef trade, citing cumulative beef price cuts as leading to farmers facing heavy losses.
IFA president Joe Healy said: “The Minister for Agriculture Michael Creed can no longer ignore the major cuts in cattle prices at the meat factories that have left beef farmers facing losses this year. Cattle prices have been cut by more than €100 per head in the last month, eroding any chance of profit for farmers selling cattle over the peak autumn months.”
Healy added: “The Department of Agriculture have worked hard and made considerable progress on market access issues and Minister Creed cannot allow the factories to undermine the value of this work with unjustified beef price cuts. The Minister has to insist that there is competition in the trade and market returns are fairly passed back to farmers. He must also ensure that market access delivers real price gains and stability to farmers.”
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