By James Campbell

Northern Ireland beef processing factories are facing a scarcity of finished cattle. Prices quoted for steers and heifers for slaughter early this week were up by 4 pence/kg from those of seven days ago.

Further rises seem certain. Journal sources indicate that some deals were done at 176 pence/kg for U3 grades this week, although factories were quoting 174 p/kg.

Buyers are also offering less harsh price reductions down the grades in some cases.

The UK National Beef Association (NBA) reckons that deadweight prices for prime cattle in England, Wales and Northern Ireland still haven't reflected properly the lighter supplies of beef coming into the UK. According to the NBA, the imports which last year accounted for 22 per cent of UK beef consumption have reduced significantly because of the EU Purchase for Destruction Scheme having been introduced for cattle over 30 months.

The NBA also believes that the under-pinning of beef prices in the Republic of Ireland by the Destruction Scheme can strengthen UK prices for months to come. Journal sources indicate that further strengthening of the Euro against the £ Sterling is having a significant effect, making it more expensive for NI processors to purchase beef from the Republic.

The Foyle Foods group has been bringing in live cattle from Britain in a bid to meet orders.

With heavy steers serving their two months retention period required to qualify for the second stage Beef Special Premium, it will be early March before the local scarcity of finished cattle has some chance of being relieved.

Finishers with cattle in sheds at present would need a very good price to persuade them to sell, bearing in mind the very strong trade for replacement animals in the marts.

The NBA chairman Robert Robinson says that the live auctions in Britain are reflecting the strong demand for finished cattle at present with animals of estimated R4L classification averaging 101 pence/kg liveweight. That is equivalent to 187 p/kg deadweight at 54 per cent kill out.