Beef producers have faced a much more challenging trading environment in recent days. A significant increase in throughput has shifted power back to factories.

Farmer speculation suggesting that cattle slaughtered in May could be included for payment under the €100m compensation fund has contributed to the higher numbers.

Cows coming fit earlier and more bulls finished in an under-16-month system are also adding to supply pressure.

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Last week’s kill was recorded at 34,446 head, an increase of 1,593 on the previous week and 2,615 head above the corresponding week in 2018. Steer throughput at 10,738 head saw a reduction of 157 on the previous week, while the heifer kill increased by 357 head to 10,055.

The official base quotes for steers and heifers are largely unchanged at a base of €3.90/kg and €4.00/kg respectively.

The big difference this week is finishers with greater negotiating power that were securing 5c/kg to 10c/kg higher are finding it much harder to retain higher returns.

It is a similar story with bulls. Throughput of young bulls increased 416 head to 4,413 last week, while the number of bulls aged over 24 months reduced 242 head to 989.

This is in line with the corresponding period in 2018, but an extra 1,243 cows (kill of 8,207) coming on to the market is reducing demand and providing a lower-cost alternative.

Under-16-month bulls trading on the grid are being quoted at a price of €3.80/kg to €3.85/kg. with some plants attempting to bring prices back to a base of €3.75/kg. Specialist finishers who last week secured a base of €3.90/kg to €3.95/kg are struggling to top a base of €3.85/kg for the coming week.

Bulls aged over 16 months but under 24 months are trading on average from €3.70/kg to €3.75/kg for R grades and €3.80/kg to €3.85/kg for U grades, excluding bonus payments.

O grading bulls are trading in a wider differential, ranging from €3.50/kg to €3.65/kg.

P+3 grading cows average €2.95/kg to €3.05/kg, while O grading cows range anywhere from €3.15/kg to €3.30/kg on average. R grades are selling from €3.25/kg to €3.35/kg, but there is a 5c/kg swing on both sides depending on negotiating power.

U grades range from €3.30/kg to €3.55/kg, with demand holding firm for heavy fleshed and particularly young cows. Some agents report steers and heifers supplies looking tighter in the weeks ahead, with cows and young bulls likely to have the greatest influence.

Price comparison

Northern Ireland prices are also facing downward pressure.

U-3 base quotes range from £3.34/kg to £3.38/kg or the equivalent of €3.78/kg to €3.83/kg at 88.2p to the euro and €3.99/kg to €4.04/kg including VAT at 5.4%.

Regular sellers are negotiating returns into the low to mid-£3.40s. Prices in Britain are also easing by 2p/kg to 4p/kg on average.

This leaves R4L steers and heifers approaching an average price of £3.55/kg (€4.24/kg), with some quotes for later in the week as low as £3.50/kg to £3.52/kg (€4.20/kg).

Bord Bia market analysis shows Italian U3 bull prices for the week ending 18 May averaging €4.19/kg excl VAT, while R3 heifers averaged €4.15/kg excluding VAT.

The German R3 bull price of €3.55/kg excl VAT is 20c/kg lower than 2018, while R3 steers average €3.73/kg and R3 heifers are at €3.55/kg.

French R3 bulls average €3.76/kg, with U3s at €3.95/kg. Steers average €3.70/kg for R3s, with heifers grading R3 averaging €3.95/kg.