Beef trade improves - except for RoI

By Justin McCarthy

While prices strengthen throughout Britain and across Europe, factories in the Republic of Ireland have pulled prices further.

For a second week in succession Irish factories have pulled quotes by 3-5c/kg on the same week Scottish factories increased their quotes by 11c/kg to 212p/kg (332c/kg inc VAT) for R4L grades. The trade has also strengthened in NI with prices having increased by 6c/kg to 190p/kg (298c/kg inc VAT) for R grading steers.

In England the average quote for R grading steers is 204p/kg (320c/kg inc VAT). Based on today's quote of 288c/kg for an R grade steer, farmers in RoI are now receiving €158 less than the Scots, €115 less than the English and €36 less than NI farmers.

Bord Bia figures show beef prices to have stabilised across Europe with Italian prices now starting to push upwards. It should be noted however that average prices are still running some 40c/kg behind last year's average.

In France there now appears to be an acceptance among both finishers and factories that beef prices are set to rise as supplies tighten in the coming weeks

Based on these trends there would appear little justification for the recent price pull by Irish factories.

While some factories are attributing the price pull to increased supplies of cattle due to the wet weather, factory agents across the country dispel this theory stating that supplies remain extremely tight.

On these grounds farmers should continue to sell hard as factories have been prepared to pay above the quoted prices of 291-286-271c/kg for U,R and O grades respectively. Competition remains strongest for the better quality lots in the north of the country with 294c/kg having been paid for Rs.

In the northwest of the country, 291c/kg appears widespread with reports of cattle having travelled from the south into the northwest at a price of 302c/kg.

In the west, factories have been slower to exceed quotes with 291c/kg being the limit for R grades. In the southwest the majority of R grade cattle are being purchased at 288c/kg with O grades at 274c/kg.

Farmers killing in the southeast have struggled to pass 286c/kg for R grades with a number of O grading cattle having been slaughtered at 272c/kg. P grading cattle continue to be hard shifted especially in the north where some factories are quoting as low as 238c/kg. However the general run of prices range from 246-258c/kg.

There is significant variation in the heifer trade with prices for R grade heifers ranging from 291- 308c/kg. Keep an eye on dates of birth as the highest prices are being paid for heifers under 24 months.

Young bulls are being purchased from 291-302c/kg again with the top prices being paid for younger bulls killing under 450kg deadweight.

Alarm Bells

Factories certainly got a wake up call this week with reports that one of the largest beef finishers in NI has decided to exit the business and rent out his land for tillage. This will see 4,000 less finished cattle available to factories this winter. Meanwhile, the double standards by NI factories continue with reports that one factory imported four loads of finished cattle from Britain this week. Despite farmers being cut 20p/kg on over 30 months cattle, all of the cattle from Britain were reported to be over 30 months. Explain that!!!.

Cattle Supplies

In the first half of 2007, cattle supplies were on par with the first half of 2006 with a total of 815,000 head slaughtered which is just 1,900 head lower than the same period last year. While the steer kill was running some 29,000 head behind last year's figures, this was offset by an increase in the number of cows and bulls slaughtered. The average carcaseweight for steers, young bulls and heifers has increased on 2006 figures. At 357.4kg the average steer carcaseweight has increased by 7.4kg with the average young bull weight increasing by 8kg to 371.5kg.

The average heifer weight increased by 3.9kg to 293.6kg.