More bite to the trade this week

By Justin McCarthy

There is a little bit more bite to the beef trade this week. While some factories last week were trying to pull prices by 3-5c/kg increased competition over the past few days has seen the base price for Rs increase to 286c/kg countrywide.

In the northeast of the country, where there was a concerted effort last week to pull the R grade price back to 280c/kg, 286c/kg is now freely on offer. Farmers opting to travel west with cattle are reported to be getting a flat price of 297c/kg for R and U grades while stock travelling into the east are being bought at 291c/kg. The general run of prices for Os range from 272-274c/kg with 280c/kg having been paid for O+ grades.

In the west of the country, prices have also increased by 3-5c/kg with the bulk of R grading cattle now being bought from a base of 286c/kg. There are some reports of 288c/kg having been paid. However some western factories have been slower to allow the price for O grade cattle to increase and have tried to stick at 269c/kg. Further into the northwest 291c/kg is being paid with a 5c/kg bonus for quality assured R grading cattle.

Down along the east coast, again the majority of cattle are being bought from a base of 286c/kg for Rs with 274c/kg being paid freely for Os. While in the southwest, farmers are receiving 286c/kg for Rs they have to fight that little bit harder with some factories still trying to buy cattle at 280-283c/kg. The price paid for O grades are also back slightly on the rest of the country with 269-271c/kg being the general run. P grades are selling from 252-260c/kg.

Heifers

The advice on heifers remains the same - farmers with good quality heifers to sell should shop around. Prices between factories can vary by almost 20c/kg or the equivalent of €60 per head. While some factories are trying to buy heifers at the same price as steers, the majority of plants are now offering a 5c/kg premium with the bulk of R grading heifers being purchased at 291-294c/kg. The top price reported for heifers this week was 302c/kg and was paid by factories both in the north and south of the country. Again these top prices are being paid for heifers under 24 months. Butcher type heifers are selling from 291-294c/kg.

Bulls

Specialised bull feeders are still receiving up to 302c/kg for good quality Continental bulls. However some plants are buying young bulls at similar prices to steers with 288-294c/kg being paid.

Cows

The recent outbreak of FMD in Britain has had a positive impact on the cow trade in Ireland. Since the ending of the Over Thirty Month Scheme (OTMS) in Britain, Ireland has been the number one market for English cow beef. With the EU having slapped an export ban on all beef from the Britain, Irish factories no longer have access to British cow beef. With supplies of cows already tight prices have responded accordingly with 238-241c/kg available almost countrywide for P+/O grading cows. In general Continental cows are selling from 252-255c/kg.

BSE Testing

There may be some light at the end of the tunnel. There is currently a proposal from the EU Commission to increase the age limit for the test from 30 months to 42 months. The sooner this proposal is accepted, and farmers no longer have to incur an unnecessary €20 charge, the better. Speaking at the ASA conference last week, Dr Paddy Wall described the BSE testing of cattle at 30 months as being similar to breathalysing children coming out of a crÉche.

NI

Despite reports that there are a few more cattle about this week, a strong demand and increased competition has seen the majority of factories increase quotes to 200p/kg (314c/kg inc VAT) for stock. The strong Euro appears to have halted movement of cattle from the south into the north. However there are reports that cattle are once again moving out of the north into Scotland for direct slaughter.