Farmers with cattle to sell received a shock this week, as factories attempted to reduce quotes by up to 20c/kg to €7.20/kg for steers and €7.30/kg for heifers.

While they have been talking the trade down for some time, it was still a surprise to find prices being slashed in the run-up to Christmas.

The issue now for farmers with cattle to sell to consider is whether this is a blip that is caused by Christmas orders being filled early or is it something more.

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However, as the week progressed, it became clear that there was widespread farmer resistance to this level of cut.

This has caused a rethink in at least some factories, which are anxious to have cattle coming forward during the Christmas period.

The Irish Farmers Journal has received a number of reports saying that a €7.30/kg offer for steers and €7.40/kg base for heifers is on the table for anytime over the holiday period.

Irish Farmers Association (IFA) livestock chair Declan Hanrahan said: “Demand for beef is strong in our key export markets in the lead into Christmas.

“The Bord Bia-compiled prime export benchmark price has strengthened in recent weeks, driven by a strong and steady UK beef price and a rising EU beef price.”

What seems to be happening is that factories are trying hard to reduce the prices they are paying for cattle.

There is a window between the filling of orders for the Christmas market and restocking for the post-Christmas period and it could well suit them to have fewer cattle.

At the same time, cattle numbers will continue tight into the new year, so factories will remain keen to have secure supplies.

Last week, 32,237 head went through Irish factories, the third week in a row when the factory kill went over 30,000 and was 34 cattle more than the previous week.

This is a long way below the 39,614 processed in the same week last year, but, interestingly, it is the highest weekly kill since April.

Next week

So where does that leave us in the last full week before Christmas?

Factories will be trying to buy at €7.20/kg for steers and €7.30/kg for heifers.

Whether they succeed or not will depend on farmers and their agents and, as we have said, we know of a number of cases where sellers have dug in and secured 10c/kg more than the official quote.

The cow trade has cooled somewhat, with top-quality U and R grading cows struggling to get €7/kg and €6.80/kg, with €6.90/kg being widely offered.

Good well-finished O grading cows are making up to €6.70/kg, while P grading cows with flesh are generally getting between €6.50/kg and €6.60/kg.

Young bulls are also weaker than last week, with €7.30/kg being quoted for the top grades, while P and O grades are being quoted as low as €7.10/kg to €7.20/kg.

Under-16-month bulls are generally working off a base of €7.20/kg before grading or in-spec bonuses are added to the price.

Britain and NI

The trade in Britain has continued steady over recent weeks, with the average steer price consistently above £6.60/kg, which is the equivalent of €7.97/kg when vat is included.

Last week, the average R4L steer price in Britain was down marginally on the previous week, but the exact same as it was the week before at £6.71/kg, which is the equivalent of over €8/kg when vat is included.

There is a slight easing in quotes in Northern Ireland, with most factories taking another 2p/kg off starting prices. However, that still leaves deals around the £6.55/kg for the U-3 grade.

The R4 steer price in Northern Ireland last week was back to £6.52/kg, which is the equivalent of €7.88/kg with vat included.