Wet weather dampens beef trade

By Justin McCarthy

The continued spell of wet weather is starting to have a negative impact on the beef trade. At just under 37,000 head last weeks kill was the biggest kill of the year to-date. Factories are using the increased supply to try and pull prices by 3-6c/kg. In the south of the country factories are now quoting from a base of 330c/kg for R grade steers while in the north 336c/kg is being quoted.

With prices remaining strong across Britain it is clear that the factories are trying to 'make hay' while the sun doesn't shine. In Scotland this week up to £3/kg (395c/kg inc VAT) has been paid for R grade steers while in the England 280p/kg (368c/kg inc VAT) is on offer. At these prices there is no justification for any price pull by Irish factories. At an R grade price of 336c/kg Irish farmers are loosing out to the tune of €126 per head compared to their British counterparts.

Farmers will have a key role to play in resisting any price pull. The reality is that the bulk of cattle slaughtered this week have been purchased at last weeks prices. However this will not be the case next week if farmers continue to offload under fleshed stock.

Slaughtering under fleshed cattle should be a last resort. Where you are running into difficulties house stock and feed them heavily (6-8kg per day) for a period of 30-40 days. Where this is not an option consider going to the mart. IFA National Livestock Chairman Michael Doran said there was no market basis for any cattle price pressure. He urged farmers to sell hard and avoid moving under finished cattle to factories.

On the ground

Prices are strongest in the northern half of the country where there is stiff competition from agents buying for NI factories. The general run of cattle are reported to be crossing the boarder at 350-353c/kg for U/R grades with O+ grades moving at 342c/kg. A flat price of 336c/kg has been paid for O-/P grades. Farmers that have been prepared to use these prices as a bargaining tool are still managing to offload stock to local plants at last week's rates. However there is no doubt that as the week progresses an increasing number of cattle are being purchased at 336c/kg for R grades and 330c/kg for Os.

In the south of the country the general run of cattle at the start of the week were being purchased at 336-342c/kg for R grades and from 325-330c/kg for Os. However an increasing number of farmers are today (Thursday) being quoted 330c/kg for Rs and 319c/kg - a clear indication that factories intend to try and continue the price pull into next week.

While a similar price is being quoted in the west of the country factories are still paying 336-325c/kg for R/O grades - mainly due to strong competition from Donegal where cattle are being purchased at 350-358c/kg for R/U grades.

Cows

The fact that that there has been no significant movement in the price paid for cows this week shows that the beef trade remains strong. Cows continue to be purchased at 286-297c/kg. Again farmers with a small number of under fleshed cows would be well paid for taking their stock to the mart.

Bulls/Heifers

It is difficult to get a handle on the bull trade this week due to the small numbers currently on offer. Some of the factories specialising in bulls are still paying from 350-358c/kg for R/U grades while others are only offering from 342-347c/kg. The same variation in price is evident in the heifer trade with the R grade price ranging from 336-350c/kg. Butcher type heifers are selling from 336-342c/kg.

BSE test

Speaking at the World meat congress in South Africa EU Agriculture Commissioner Mariann Fischer said that it was time to lift the 30 months age threshold on BSE testing. She said "We have been eradicating BSE, and raising the age threshold will not compromise food safety.'' In recent weeks, the Department of Agriculture has submitted a case to Brussels to lift the 30 month testing age.