Beef producers have faced renewed price pressure in recent days, with factories reducing base quotes for steers and heifers to €4.10/kg and €4.20/kg respectively.
Bull beef finishers are facing significant negotiating challenges, with bulls finished in an under-16 month finishing system worst affected.
Many plants have reduced the base quote on offer to €4.05/kg to €4.10/kg, with a small selection of plants further back on a base price of €4.00/kg.
Some finishers have also faced delays in getting bulls accepted for slaughter, with preference given to steers and heifers or bulls over 16 months.
Many producers have criticised the pressure on bulls, citing that factories told farmers that bulls less than 16 months were a more suitable animal for export markets, but now factories don’t want to pay the higher price when bulls are traded on the grid.
The other aspect producers need to be careful of is carcase weight. This differs between plants and even within plants.
The general weight limit being applied is 410kg to 420kg carcase weight, with some operating a higher carcase weight limit of 430kg carcase weight.
Bulls aged over 16 months are trading on average at €4.05/kg for R grades and €4.15/kg for U grades.
There are small numbers trading 5c/kg higher, but, likewise, the same plants that are offering a base of €4.00/kg for bulls less than 16 months are also offering €4.00/kg for R grades.
Last week’s beef kill increased by 2,114 to reach 34,097. The increase stemmed from 1,094 more heifers processed, 417 more cows, 402 more bulls and 199 extra steers.
The kill is on a par to the corresponding week in 2017, while annual throughput is running 21,237 head above 2017 levels.
While a high percentage of steers and heifers are trading on a base of €4.10/kg and €4.20/kg, there are some cattle being traded from specialist finishers securing a 5c/kg higher base price.
The higher price has been harder to negotiate as the week progresses, but there are still buyers willing to pay extra to secure higher numbers of choice cattle.
The cow trade is variable, with plants continuing to have variable success in pulling prices. Moves were made last week to reduce quotes to €3.40/kg to €3.45/kg for P+3 grades and €3.50/kg for fleshed O grading cows.
Plants have had some success in reducing prices to this level for deals involving small numbers, but regular sellers handling large numbers continue to secure 5c/kg to 10c/kg higher.
This is reflected in the Department of Agriculture collated weekly price table, which shows much higher average prices.
One aspect that has become more apparent is pressure on light-carcase cows with a poor cover of flesh. As such, sellers in doubt as to the price payable should speak to their agent before moving cows.
R grades are trading anywhere from €3.60/kg to €3.75/kg, with U grades up to 10c/kg higher.
Northern trade
The northern trade has eased, with base U-3 quotes falling 2p/kg to 4p/kg. Entry-level base quotes are £3.62/kg or the equivalent of €4.12/kg at 87.9p to the euro and €4.34/kg including VAT at 5.4%.
Regular sellers are securing a U-3 base of £3.66/kg (€4.39/kg incl VAT), with returns at the top of the market rising into the high £3.60s and low £3.70s.
The AHDB reports an average increase in British steer prices of 3p/kg, with R4L steers averaging £3.84/kg (€4.60/kg incl VAT), with heifers 3p/kg lower.
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool
Read more
Beef trade slows as plants make cuts to quotes
Calf exports 44% ahead of last year
Beef producers have faced renewed price pressure in recent days, with factories reducing base quotes for steers and heifers to €4.10/kg and €4.20/kg respectively.
Bull beef finishers are facing significant negotiating challenges, with bulls finished in an under-16 month finishing system worst affected.
Many plants have reduced the base quote on offer to €4.05/kg to €4.10/kg, with a small selection of plants further back on a base price of €4.00/kg.
Some finishers have also faced delays in getting bulls accepted for slaughter, with preference given to steers and heifers or bulls over 16 months.
Many producers have criticised the pressure on bulls, citing that factories told farmers that bulls less than 16 months were a more suitable animal for export markets, but now factories don’t want to pay the higher price when bulls are traded on the grid.
The other aspect producers need to be careful of is carcase weight. This differs between plants and even within plants.
The general weight limit being applied is 410kg to 420kg carcase weight, with some operating a higher carcase weight limit of 430kg carcase weight.
Bulls aged over 16 months are trading on average at €4.05/kg for R grades and €4.15/kg for U grades.
There are small numbers trading 5c/kg higher, but, likewise, the same plants that are offering a base of €4.00/kg for bulls less than 16 months are also offering €4.00/kg for R grades.
Last week’s beef kill increased by 2,114 to reach 34,097. The increase stemmed from 1,094 more heifers processed, 417 more cows, 402 more bulls and 199 extra steers.
The kill is on a par to the corresponding week in 2017, while annual throughput is running 21,237 head above 2017 levels.
While a high percentage of steers and heifers are trading on a base of €4.10/kg and €4.20/kg, there are some cattle being traded from specialist finishers securing a 5c/kg higher base price.
The higher price has been harder to negotiate as the week progresses, but there are still buyers willing to pay extra to secure higher numbers of choice cattle.
The cow trade is variable, with plants continuing to have variable success in pulling prices. Moves were made last week to reduce quotes to €3.40/kg to €3.45/kg for P+3 grades and €3.50/kg for fleshed O grading cows.
Plants have had some success in reducing prices to this level for deals involving small numbers, but regular sellers handling large numbers continue to secure 5c/kg to 10c/kg higher.
This is reflected in the Department of Agriculture collated weekly price table, which shows much higher average prices.
One aspect that has become more apparent is pressure on light-carcase cows with a poor cover of flesh. As such, sellers in doubt as to the price payable should speak to their agent before moving cows.
R grades are trading anywhere from €3.60/kg to €3.75/kg, with U grades up to 10c/kg higher.
Northern trade
The northern trade has eased, with base U-3 quotes falling 2p/kg to 4p/kg. Entry-level base quotes are £3.62/kg or the equivalent of €4.12/kg at 87.9p to the euro and €4.34/kg including VAT at 5.4%.
Regular sellers are securing a U-3 base of £3.66/kg (€4.39/kg incl VAT), with returns at the top of the market rising into the high £3.60s and low £3.70s.
The AHDB reports an average increase in British steer prices of 3p/kg, with R4L steers averaging £3.84/kg (€4.60/kg incl VAT), with heifers 3p/kg lower.
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool
Read more
Beef trade slows as plants make cuts to quotes
Calf exports 44% ahead of last year
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