An unprecedented lift in base factory quotes for beef cattle at the end of last week saw 10p/kg to 14p/kg added to most prices, and 340p/kg widely available at the start of this week.

The lift in price was driven by a couple of factories, leaving the rest with little option but to respond.

Sources in these factories acknowledge that they did not see the significant increase coming. Deals are available for producers this week who are willing to shop around.

There are reports that some farmers with in-spec heifers are working off a base of 360p/kg for U-3 grade cattle, although deals around 350p/kg are more common. These prices are on a par with what is available in England.

The big question is whether the increase in prices is only a one-week wonder or whether it can be sustained through the autumn. A number of factors have combined to force on the trade in the short term.

With ground conditions still good and plentiful supplies of grass and fodder, farmers are in no hurry to sell. That is leaving cattle numbers tight. To date in 2014, the prime cattle kill in NI is down 6% on the same period in 2013.

Competition

There is also renewed competition from exporters taking cattle to the north of England and Scotland for direct slaughter (paying full weight to 420kg and no deductions on fat class 4), and a pick-up in demand for beef in Britain.

The test will come when the weather breaks and local farmers look to move cattle.