Beef prices rise again

The beef trade has definitely firmed this week. Factories have been forced to lift their quotes and some agents even had to pay a bit on top to get adequate supplies of cattle. The biggest jump came in the South. This was after the sellers, ruffled by the factories attempts to drop prices in recent week had sold their cattle through the system. Now it's down to the hard sellers who are holding firm to get a return for their time and money. This week 283c/kg (101) for Os and 288c/kg (103) for R grades is common enough down south with some factories quoting 291c/kg (104) for R grades and 286c/kg (102) for O grades.

Kildare, not normally known for pushing the boat out, offered 294/288c/kg (105/103) for R/O grades and further up the country 297c/kg (106) is being paid. Farmers selling Us are getting over 308c/kg when bonuses are included in the price.

The Department factory sheets clearly show that the factories attempts to pull prices were not successful. Prices for steers, heifers and cows were steady and are expected to rise next week.

High kill

There was 152,471 cattle killed in the first five weeks of 2006. This was an amazing 48,684 over the same period last year or nearly 10,000 extra each week. This breaks down into 19,000 extra steers, 14,000 extra heifers and 12,000 extra cows. These volumes surprised everyone and is bound to impact on supplies over the next two months.

John Bryan, IFA beef committee chairman said demand is definitely getting firmer and with the tightening of supplies well over quoted prices are being paid to secure cattle. He confirmed that 294-297c/kg (105/106) is been given for R grades in the North of the country.

Cow prices

An additional 2,000 extra cows were killed last week compared to 2005 and every one was in demand. The base price for heavy O and P grade cows has risen to 246 to 252c/kg (88/90). Heavy U grading cows are still getting the 280c/kg (100).

Northern Ireland

There is an even greater scarcity of cattle in Northern Ireland. Factories there are shipping them in from the UK to fill the gap. (I wonder if we could see UK/Northern cattle come south after the ban is lifted in March). The extra imports has held Northern sellers to a base of 200pstg/kg (308c/kg/110p/lb). In the UK the demand is firming with most plants on a base of 196pstg/kg (302c/kg-108p/lb) for R4Ls.

Marts

All marts are reporting a brisk demand with cattle ready to kill in demand from factory buyers. However there is variation with regards to price increase with marts in the North and West reporting prices similar to last week for steers while further south marts are reporting a price increase of €30 to €40 per head for 450kg plus lots. Heifer prices have increased countrywide by €30 to 40 for quality lots. Live shippers remain very active for quality stock and are in attendance at special show and sales around the country. This demand has seen top quality beef cattle selling from €400 to €600 over and E and U grading weanling bulls selling for up to €800 over. Calves remain a strong trade with live shippers active for both Friesian/Holstein bulls and dairy bred BB bulls and heifers. Marts are reporting Friesian calves making €130 to €170 a head but this is at variance with invoices one live shipper showed me. He bought 70 calves in Southern marts at around the €100 mark.

Live shipping

Live shipping to the Lebanon is unlikely to start any time soon. The price of beef actually jumped by over $100 a tonne when the export refunds were cut to zero. This was much to the delight of Brazil who are still ferrying thousands of live cattle every month to the Lebanon. There are still small shipments coming from Europe made up of a mixed bag of cattle, sheep and ironically pedigree stock. There still remains export refunds on pedigree stock much higher than those that were on live commercial cattle.

Enfer profits slump

I see Enfer, the first movers on the BSE test, reported profits for 2004 well down (€8.3m compared to €17.2m in 2003), on the back of lower turnover. The reduction appears to be the cut in BSE testing in August 2004 in the BSE charges and extra competition. On another note I hear that Enfer's part owner Michael O'Conner has sold all his cattle out of the rented sheds in recent weeks. The prices he got from Donegal were reported to be 300c/kg (107) for R grades and 308c/kg (110) for U grades.