Beef trends: trade running swiftly to year end

The beef trade continues strong, with demand and processing activity showing no sign of letting up.

Last week’s kill totalled 38,068 head, a drop of just 1,299 on the week previous. This is despite throughput levels being hit in many areas on Monday and Tuesday due to snowfall and difficult road conditions. Some plants extended working hours over the rest of the week to compensate, which shows the level of appetite in the market and demand for beef.

It is likely that this week’s kill will also be well above normal levels for the week pre-Christmas, with agents also active in sourcing supplies for a shorter three-day kill next week.

Agents are also looking at longer-term supplies and putting feelers out for numbers coming on hand in January.

The trade is solid, with a high percentage of heifers moving at a base of €4.10/kg. There are some plants opening negotiations and purchasing heifers on a base of €4.05/kg, but where significant numbers are involved there are plants willing to compete outside of their natural catchment area and pay a base of €4.10/kg to secure additional supplies.

At the top of the market, a base of €4.12/kg to €4.15/kg is being paid to specialist finishers, of which some deals have been negotiated to move cattle this week and again next week. A high percentage of steers have also moved up to securing a base of €4.00/kg, with prices ranging from a base of €3.95/kg at the lower end of the market to €4.02/kg to €4.05/kg at the top of the market.

The reduction in the kill was driven primarily by fewer cows handled, with throughput falling 781 head to 7,632. This follows a similar drop last week, with more bite in the cow trade as a result.

The gap between prices paid between plants most active in the market and those with little interest has widened, as reflected in the price tables collated by the Department of Agriculture.

P+3 grading cows are selling from €3.15/kg to €3.30/kg, with fleshed O grades mainly from €3.40/kg to €3.45/kg. R grades range from €3.45/kg to €3.55/kg on average, while U grades are trading from €3.55/kg to €3.65/kg.

Prices paid to those with large numbers on hand are ranging anywhere from 5c/kg to 10c/kg higher than those quoted above.

Bulls are solid, with the general run of prices averaging €4.00/kg for R grades and €4.10/kg for U grades.

At the top of the market, there are some specialist finishers securing €4.12/kg to €4.15/kg for U grades or a flat price of €4.05/kg for mixed lots of R and U grading bulls.

O=/+ grading Friesian bulls are selling mainly from €3.70/kg to €3.80/kg, but there are prices as high as €3.90/kg paid for large groups of upwards of 70 to 100 bulls.

Northern trade

The northern trade is steady, with agents also busy in the last week to tie down significant numbers for the Christmas kill and the first few days of the new year.

Base quotes remain at £3.52/kg to £3.56/kg or the equivalent of €3.98/kg to €4.03/kg at 88p to the euro and €4.20/kg to €4.24/kg with VAT included at 5.4%.

Regular sellers are securing 4p/kg to 6p/kg higher, with top prices for heifers rising to £3.62/kg to £3.64/kg (€4.32/kg to €4.34/kg incl VAT), while cows range from £2.90/kg to £3.00/kg (€3.45/kg to €3.58/kg) for good continental R grading cows.

British beef prices have eased slightly by 1p/kg to 2p/kg, with R4L steers and heifers averaging £3.76/kg (€4.48/kg).

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