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Beef producers are facing renewed pressure on prices, with factories trying to implement price cuts across steers, heifers and young bulls.
A number of plants are trying to reduce the base price paid for steers to €3.90/kg, while others are trying to reduce top prices paid to a base of €3.95/kg.
Heifers are facing a similar challenge, with this week’s base prices ranging from €4.00/kg to €4.05/kg.
There are small numbers of cattle moving above this price, but these deals are falling fast in frequency, with some completed at the start of the week.
Throughput in plants remains unchanged, with factories continuing to closely control throughput. This is leading to a time-lag of two to four days in general, but over a week in some cases between deals being completed and cattle being accepted for slaughter.
Last week’s kill increased marginally from 32,985 to 33,257.
While the overall change was just 272 head, there were significant changes within categories. The steer kill increased by 554 head to 10,809, while heifer throughput fell 355 head to 9,931.
The bull kill continues to creep upwards and last week increased 247 head to 5,908. Bulls are also facing downward price pressure, with plants reducing quotes for R and U grading bulls by 5c/kg.
The general run of prices is €3.95/kg for R grades and €4.05/kg for U grades.
Again, some plants are trying to quote 5c/kg lower in deals involving small numbers.
Cows are the only category of stock that are, by and large, avoiding downward price pressure, with factory appetite remaining strong and helped by throughput easing by 158 head to 6,219.
P+3 grading cows continue to trade anywhere from €3.10/kg to €3.30/kg, with fleshed O grading cows selling from €3.30/kg to €3.45/kg.
The general run of prices for R grading cows ranges from €3.50/kg to €3.55/kg, but specialist plants have paid up to €3.60/kg to €3.65/kg where deals also involve heavy U grading cows.
Northern and British trade
The latest AHDB price report shows the British trade remaining under a period of price pressure.
R4L heifers have eased by 1p/kg further and range from £3.70/kg to £3.73/kg. At 88p to the euro, this is the equivalent of €4.20/kg to €4.24/kg or €4.43/kg to €4.47/kg when VAT at 5.4% is added into calculations.
Steers were attracting a price premium in recent weeks, but a reduction in price of 2p/kg to 3p/kg has now placed steers on the same R4L price as heifers.
Young bulls have suffered a much greater price reduction, with average prices across all classes reducing by 6p/kg to 7p/kg.
R3 grading bulls average £3.52/kg (€4.22/kg incl VAT), with heifers 10p/kg higher at £3.64/kg (€4.34/kg).
Meanwhile, cows have recovered following last week’s fall in price, with prices lifting 3p/kg to 5p/kg across regions. Prices range from an average of £2.77/kg (€3.32/kg including VAT) for O+3 grading cows, back to £2.60/kg (€3.11/kg) for O- grading cows.
The northern trade is unchanged. The lowest U-3 base quotes are being offered at £3.48/kg to £3.50/kg, but most deals are being completed at £3.52/kg to £3.56/kg (€4.00/kg to €4.06/kg or €4.22/kg to €4.27/kg including VAT).
Cows are steady, ranging from £2.80/kg for good O+ grading cows to over £3.00/kg for top R grades.
The NI prime cattle kill stood at 7,169 last week, which was steady.
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