While beef finishers are still a long way off where beef prices need to be, the trade is moving in the right direction, with most factories moving to €3.45/kg to €3.50/kg for in-spec steers and heifers. This is a lift of 5c to 10c/kg on last week’s quotes with more demand for in-spec stock.

Cows have also seen a lift of 15c to 20c/kg in the last three weeks. News that a number of food service chains, including McDonald’s and Supermac’s, are already open or plan to do so in May has meant some processors have been very active for cows.

Good R+3 grading cows are now at €2.90/kg, with a little more available for top-end cows. P+3 grading cows are generally trading around €2.60/kg to €2.65/kg, with well-fleshed O cows in the €2.70/kg to €2.75/kg bracket.

R and U grading bulls are generally trading at €3.40/kg to €3.50/kg. There is a little more scope on weight here than there has been in recent weeks, with processors more likely to move on weight limits rather than increase price. Under-16-month bulls continue to trade on a base of €3.40/kg to €3.45/kg.

The national kill appears to have stabilised at 25,602, up 377 head of cattle on last week’s kill of 25,225.

This increase was most evident in the number of heifers killed, up 626 on last week’s figures. The kill is down 5,220 head on the corresponding week for 2019 (30,822).

The 2020 kill excluding calves is currently down 30,460 head of cattle on 2019 numbers.

With supplies getting tight around the country, factories have had to bargain to get stock, with deals on transport and weights provided rather than price increases in some locations.

Many factories have been operating at reduced capacity up to now and low numbers have suited, but with more life in the trade agents have had to go looking for stock.

Supplies

Speaking to factory agents on the ground, finished cattle supplies are drying up fast, with many sheds empty over the past three to four weeks.

There was a resistance there, especially for farmers with in-spec cattle, to sell at €3.40/kg and this has paid off with a lift in quotes.

It’s remarkable when the market turns negative that the beef price comes down in 10c/kg bands very quickly, but when it moves in a positive direction it goes back up in 5c/kg bands over a prolonged period.

IFA livestock chair Brendan Golden has said finishers need to be aware that factories have broken the €3.40/kg threshold and are looking for finished cattle. He said prior to COVID-19, beef prices were extremely poor due mainly to Brexit uncertainty and exchange rate problems and farmers selling cattle were facing losses in the order of €100 per head.

Since COVID-19, beef prices have fallen from a base of €3.65/kg to €3.40/kg and inflicted another €100 per head in price losses.

NI trade

There is also early signs that the beef trade in Northern Ireland has bottomed out, with farmers reporting much more life in the trade.

Tighter numbers has seen cattle agents becoming more active to source numbers. Although quotes are unchanged on 316p to 320p/kg (€3.63 to €3.67/kg ex-VAT) for prime cattle with U-3 conformation, prices are running 4p to 10p/kg above base.

Demand for cull cows is also growing, although base quotes are also unchanged on 245p/kg (€2.81/kg) for R3 grading animals.