Beef prices remain unchanged, with steers moving at a base of €3.90/kg and heifers at €4.00/kg. There are very few deals being completed above this level, apart from a small number of sellers securing 5c/kg higher. There are signs of some plants becoming more anxious for stock, but by and large the balance of power remains with plants, aided by another kill of 32,231 head last week.

Reports continue to surface of plants reducing purchasing activity or discounting what they deem as out-of-spec stock. Weight seems to be the biggest concern, but age limits and quality assurance (QA) status are also issues faced. For sellers trading stock that they think could fall outside required specifications, it is important to clarify the price on offer and any potential deductions to avoid incurring unforeseen penalties.

The levels of penalties being applied to out-of-spec stock differ significantly. Regular sellers with good customer-processor relationships or offering mixed batches with a high percentage of in-spec stock are in many cases managing to get stock moved at the same base price.

Others are facing delays in slaughtering, while farmers trading only out-of-spec stock without a previous relationship with a processor are in cases finding it hard to find a buyer. Price penalties of 10c/kg to 20c/kg are being applied in other cases or refusal to pay cattle on the grid.

IFA National Livestock Committee chair Henry Burns is calling on Minister for Agriculture Simon Coveney to immediately intervene through the Beef Forum to deal with the threats on farmers from factories on key issues around weights and specifications.

Control of cow kill

Plants are managing the cow kill closely, with throughput being restricted to 6,606. More dairy cows in the market have allowed them to continue to pull prices back. P+3 grading cows are this week trading for €2.85/kg to €3.00/kg, with fleshed O grading cows from €2.95/kg to €3.15/kg.

There are some deals being completed to regular sellers above this level, but these are harder to secure in recent days. The live trade for continental cows is bucking the trend, with demand from plants specialising in the trade for heavy well-conformed cows helping to keep a floor under the trade. R grade cows are selling from €3.35/kg to €3.50/kg with U grades from €3.50/kg to €3.60/kg.

Bull prices

Bull throughput increased another 100 head to 2,865. Weight limits are attracting closer attention, with restrictions being imposed depending on the purchasing plant from 420kg to 450kg carcase weight. R and U grade bulls are trading for €3.85/kg and €4.00/kg respectively. Under -16 month bulls traded on the grid are being offered a base of €3.85/kg to €3.90/kg.

Easier NI trade

The northern trade has eased back, with higher numbers being blamed for a reduction of 2p/kg. The U-3 base quote for heifers and steers is £3.16/kg and £3.18/kg or the equivalent of €4.72/kg to €4.76/kg including VAT. Cow throughput remains high, with 2,350 head processed last week. Best quotes are reported at £2.45/kg (€3.66/kg incl VAT) and £2.50/kg (€3.74/kg incl VAT).

Supply forecast

Many farmers are raising questions about predictions of fewer cattle available for slaughter. AIM data continues to show over 50,000 less cattle in this age category. The high throughput, despite tighter numbers forecast, is being aided by cattle being killed at a younger age. Reports point to higher-than-normal throughput of cattle aged 18 to 24 months of age.