Analysis of MartWatch figures for the first half of 2015 shows that average prices for almost all cattle types were higher than the peak figures observed in 2012. On a price per kilo, basis the only animal type not to have exceeded 2012 levels in the first half of 2015 were 400kg to 500kg steers. All other types had average prices well in excess of those seen in 2012.

Forward store bullocks from 500kg to 600kg achieved prices on par with 2012. However, the big movers were heifers, with prices which outperformed 2012 levels by up to 11c/kg or €49.50 per head more than at peak in 2012 for the top third of heifers from 400kg to 500kg. Weanling heifers also outperformed the equivalent weight bulls in 2015 when compared with the highs of 2012.

Live cattle prices rocket

Increased demand for all types of live cattle and a strengthening beef price resulted in the rocketing of live cattle prices on last year’s levels. Analysis of MartWatch prices for the first six months of the year compared with the first six months of 2014 shows that average prices have jumped by 21-36c/kg. Price increases of this amount have not been seen since the jump from 2011 to 2012 caused by increased demand and tighter supply of all cattle types.

On a per-head basis, this translates to price increases in the order of €91 to €93/head for a 300kg weanling heifer and 350kg weanling bull on last year’s levels. In the case of store cattle, the average 550kg steer saw prices per head jump by €135/head in the past 12 months, while the average 500kg heifer was met with price increases in the order of €119/head. The average 500kg heifer sold for €1,210 in the first half of 2015, up €119/head on the same period last year. The average 550kg steer sold for €1,258, up €135/head on last year, while the average 350kg weanling bull sold for €879/head, up €93 per head on the same period in 2014. Average prices for 300kg heifers increased by €91/head in the same period.

Quality still a factor

In the past few years there has been a strong focus on quality. Since the introduction of the Quality Payment Scheme grid, farmers have focused on sourcing better-quality cattle that will return more when slaughtered. The difficult beef trade last year saw an increased focus on better-quality animals to take advantage of the QPS grid. The price differential which exists between the top and bottom thirds of cattle has widened year-on-year up to now. However, in some categories of cattle, supply and demand issues resulting in high prices during the first half of 2015 saw the differential decrease for steers and light weanling bulls. This was the first year that did not see this trend continue for all cattle types. In the case of steers, the differential decreased by 4-7c/kg and in the case of 200kg to 300kg weanling bulls it decreased by 6c/kg. In all other cattle types, the differential increased again in the past six months, by 4c/kg for heifers and 2c/kg for weanling heifers.

Less application of price penalties from factories on the basis of the animal’s age and number of movements (stemming from the beef forum amnesty) has resulted in fewer price penalties in marts for cattle that are over 30 months or with more than four movements. This was particularly the case when finished cattle supplies were tight over the summer months. However, in more recent weeks buyers have been more active for in-spec stock once again. Price penalties of about €100/head are evident for older stock, with agents becoming more choosey also.

Because the first half of 2015 saw some of the highest mart prices to date, 2015 is outperforming the average of the last five years in terms of price. Again, weanling heifers and store heifers are the key animal categories here. Weanling heifers ran about 26c/kg or €90/head above the five-year average for the first six months of the year. Store heifers were 21c/kg or €93/head above the average of the last five years for that animal type. Weanling bulls and store bullocks were well over the five-year average. Weanling bulls from 300kg to 400kg were 19c/kg or €67/head above the five-year average while stores from 400kg to 500kg were 16c/kg or €74/head above the average, and heavier stores ran at 15c/kg or €80 per head over the average price for the last five years.

Higher numbers in summer

Over the past few years the mart trade has become more and more seasonal. Just last year the flow of cattle through marts was low as farmers waited it out to see what the autumn trade would bring. This year saw the complete opposite happen. Mart managers across the country report higher throughput of cattle through rings during the summer. Continued strong prices and demand resulted in farmers selling cattle earlier to capitalise on the higher prices. Despite higher throughput, firm demand has kept prices reasonably steady over a period which would normally have seen more variable prices.

The strengthening beef price from last spring right through to late summer placed a firm floor under cull cow prices. The spring saw strong demand for all young cow types suitable for finishing at grass, while the trade for fleshed cows was extremely strong at times. Continental fleshed cows sold mainly from €1.90/kg to €2.20/kg, while at some stages prices of over €2.25/kg for young U grade cows were received. Feeding cows sold from €1.70/kg to €1.90/kg for continentals, with age, weight and grade being the main factors determining price.

Strong calf prices

The spring of 2015 saw a strong calf trade. Calf exports are back 16% or 16,000 head on last year. Traditionally calf prices start strong in January and reduce as the season progresses. This year saw a strong trade right through spring. Farmers-type Friesian bull calves sold mainly from €120 to €150. The exporters were active for calves from €70 to €120. Despite exports being down, and an additional 110,000 calf births (94,000 dairy births), prices were strong. Angus and Hereford calves saw the strongest prices. Right through the spring prices ranged mainly from €250 to €350/head for good-quality types, backed by increased farmer demand. Friesian heifer calves saw prices decrease in the spring. A small amount of these would normally be traded through marts, with most being farm-to-farm sales.

Read more from the Mart Price Focus here.