North continues to lead the way on beef prices

THE lift in NI beef factory price rise, anticipated in this column last week, has taken place and the signals coming down across the Border are for NI prices to continue to ratchet up during November.

If nothing else, there is room to close the price between the North and Britain.

This brings the price of an R3 steer to the NI farmers to 160p a kg. Translated from sterling and including 4% vat, this is equivalent to 93.2 p a lb in the Republic.

Northern farmers point to the 177 p a kg paid to the English farmer for his R3 steer and even better the 190p a kg that the Scottish farmer is collecting for his R3 steer. To be on the same level in the Republic, you are talking 103p a lb and 110 p a lb respectively.

Almost 1000 Southern cattle are travelling to the North each week, but most of these are reckoned to be suckler weanlings.

The slight tightening of beef supplies in Northern Ireland is also being felt in Donegal but elsewhere in the country the incoming conveyer belt is still well stacked.

Once supplies tighten it will be interesting to see whether the factories shorten the working week or share a little of their current good margins. Maybe even both.

The feedback from the Bord Bia offices in Italy and France is that beef demand is slack enough this week as cheap pork is being promoted. The Irish export factory quotes are almost exactly in line with last week's; 83/81 p/lb for the R/O grade steer, 86/88 for the heavy U grades, about 82p a lb for the export quality heifer. 78 to 80p a lb for the butchers heifers. 60 to 62 p a lb for the cows with flesh; appalling prices for the thin cows.

I have one Kepak receipt here showing P1 grade heifers at 30 p a lb and I presume they are no different from any other plant.

The continuing British/French beef row, plus beef promotions, has helped consumption in Britain. Still there is no sign of the great scarcity of beef that was supposed to happen before Christmas.

In St Boswells mart in Scotland this week handy beef heifers were making 95 to 100 p sterling a kg liveweight. Butchers were paying from 105 to 115 p a kg live for steers.

At the same time in the North and in Britain, Holstein bull calves are practically being given away. So bad is the price for cull ewes and Holstein calves in Scotland that farmers are being coached on how to shoot calves and sheep.

Clean cattle

Even before the winter gets going the concern over dirty cattle in rising. The new Fair Oaks producer club, featured recently in the Journal, is looking for cattle of grades 1 and 2 on the Department's clean cattle scale.

The Goodman group is making a significant effort in the whole area of guaranteeing safe beef to their customers. An interesting development in this group is the installation of the country's first carcase steam steriliser in their Nenagh beef plant. They point out that this not seen as a solution to sending in dirty cattle.

Live exports

Combined weanling and calf exports continue to go out at close to 12,000 head a week. At most weanling marts these days, at least 50% of the animals on offer are purchased by live shippers. Weanling numbers are tailing off in the Southern marts but continue high in the West.

Irish live shippers in Australia this week report that the recent surge in prices has levelled for the past two weeks, partly because of ongoing drought.

Bad weather hits weanling prices

Weanlings

High winds and high seas took their toll on weanling prices this week The absence of shippers from the marts resulted in a slower trade, for particularly for heifers.

In Castleisland weanling heifer prices were back £30 a head. The trade for shipping type heifers was slower and generally prices ranged from £30 under to £100 under the £1/kg.

It was also harder for heifers to top the £1/kg mark at Ennis. The top run of heifers sold from £50 under to £20 under the £1/kg. Plainer heifers ranged in price from £120 under to £60 under the £1/kg.

There was a strong farmer trade for weanling bulls at Ennis. Exceptional lots made to £160 along with their weight. However, prices generally varied from £60 to £90 over for cntinentals. Plainer continentals and British breeds ranged from the £1/kg to £50 over.

In Castleisland good quality bull weanlings sold from around £70 to £100 along with their weight. Plainer stock ranged in price from the £1/kg to £40 over.

Heifers and bullocks

The trade for both bullocks and heifers was firmer this week, with stronger farmer buying for store cattle. Mart managers report a lot of enquiries for single punched bullocks and for fancy heifers.

The fact that farmers have recently received Area Aid and premia payments has probably helped the trade. And also the fact that many farmers have sold finished cattle over the last few weeks.

In Dungarvan beef heifers made from £70 under to £25 the £1/kg. Store heifers sold for £120 under to £35 under their weight. In Ennis good heavy heifers made from £60 under to £20 under their weight and plainer stock from £120 under to £70 under.