"Totally unjustified" beef price cut in the past week

BULLOCK and heifer prices at the Irish meat plants again drifted lower this week even though British prices hardened by 4 to 5 pence a kilo and demand on the continent strengthened.

At the marts, the value of producing high quality animals was underlined with good demand and improving prices for the best beef and store animals, while plainer cattle found it difficult to attract buyers. The heifer trade continued to languish in the doldrums and was described by one mart manager as "dodgy".

Factories paying the better prices last week dropped back into the pack over the past few days. Quotes of 83p a lb for R grades are now almost universal with O grade on 81p.

Most of the business is being done in the 82p to 84p a lb range with flat quotes on 84p. The price differential between British and Irish meat plants now stands at around 13p a lb.

Bord Bia reports weekly throughput running well ahead of this time last year. Total disposals for the year to date are running 110,000 head up on last year.

For the month of August some 11,000 extra steers were processed. Last week's kill hit 41,000. A spokesman for Dawn said numbers were "incredible for the time of year".

IFA Livestock Committee chairman, Raymond O'Malley reacted strongly to the latest Irish factory prices saying that the reduction was "totally unjustified and should not be accepted by farmers; the meat plants are abusing the situation".

He said; "This is nothing short of an attempt by the factories to keep the lid on prices and prevent the benefits of improved market conditions being passed back to farmers".

The IFA has called on the meat plants to lift prices by a minimum of 4p a pound so as to reflect the stronger market.

Prices are now strong across Europe, especially in France, Holland and Italy, and supplies are described as "tight". There is good demand from the continent for fore quarter beef.

Internationally prices have recovered to above those prevailing before the collapse in the Russian market.

The break in the weather and lack of farmer confidence appears to have fuelled the rush of supplies. Farmers are being encouraged by the IFA to sell stronger, based on the current market realities.

Live shipping

Live shipping to Europe is strong and there is no shortage of shipping capacity. Quality younger stores and weanlings are in particular demand.

It is expected that the imminent inspection of the ro-ro vessel MV Venus, which sails three times from Ringaskiddy to St. Malo, will substantially increase its capacity from the existing 10 trucks a trip. The IFA want the boat to be licensed for 20 loads.

Lebanon

Outside of EU markets, Lebanon is forecast to take 70,000 to 80,000 head of Irish cattle by the year end, double last years level. Libya has not yet signed a contract with Australia for 60,000, leaving a glimmer of hope that Ireland may still feature as a supplier to Libya.

Weanlings

At the weanling show and sale in Ennis numbers at 1,500 were double last year's level. A representative sample of 31 lots of weanling U bulls sold in mid-sale made £105 to £245 over the £1 a kilo with an average of £170 over £1 a kilo.

By contrast R grade bulls were £54 to £170 over £1 a kilo with an average of £115. This represented a penalty of £55 on the poorer quality animals

Top heifers made £1 to £30 over the £1 a kilo with the bulk of the rest selling at £25 under £1 a kilo. The best white Charolais of 230 kgs made £272.

The pattern of a severe penalty for low quality was repeated at the heavier weights at marts during the week..

For instance, at Bandon, plain lots were in poor demand and the trade was quieter except for continentals and at Kilmallock the Charolais were £10 to £20 dearer than last week, with small store bullocks also dearer. Roscrea report beef bullocks easier to sell this week.

The heifer trade is very sluggish. Factories and butchers have cut prices by 1p to 2p a pound. Kildare Chilling say there is no trade in heifers and that quality is poor because farmers have held on to overweight animals. At Roscrea mart the demand for heifers was "not there."

No one for plain Janes

One of the trends emerging in the cattle marts this week is that there are few if any customers for plain heifers while the plain quality male cattle are finding customers but with some difficulty.

Many of the mart managers say that poor or plain quality heifers are extremely difficult to sell with only quality continental ones finding buyers. The heifer trade is further suffering from the switch by live shippers to bull weanlings for the Spanish market.

Mart numbers are rising. The good supply of grass and with most of the harvesting now completed had added to the numbers of buyers evident at the ringsides.

The good store cattle, especially continentals, improved in price this week as buyers begin to select for quality. Some marts report prices up by £20 a head for this type of stock.

Most of the adult cattle being sold now have subsidies drawn. This is reflected in the level of subsidy applications to the Department of Agriculture which is currently down 10% on last year. But once the weanling trade begins in earnest, this gap could be quickly made up.

The absence of available subsidies on cattle being sold in the marts is providing the odd bargain as those with subsidies are not fetching the normal differential. The heavy beef cattle made between £40-£60 over, again reflecting quality with the forward stores making up to £55 over for the right article. Prices seem to stronger in the northern and western parts of the country reflecting interest from Northern Ireland buyers and larger feed lot owners.