The possibility of a no-deal Brexit has sharpened the minds of factories this week, as they look to increase exports of beef into the UK prior to 31 December.

Factories have been slow to increase prices during the second half of last week, but there does appear to be more appetite in the market on Monday morning.

A lot of factories are killing six days this week at maximum capacity to push through numbers.

Most cattle have been bought for this week at this stage and factories have been slow to quote for next week.

However, all factories have pointed to cattle being required for a four-day kill next week.

Supply boost

Factories have looked to their larger suppliers to boost supply this week and some have offered sweeteners of between 6c/kg and 10c/kg on top of base prices to get numbers.

Deals on weight and haulage are also being thrown into the mix to secure supplies. Most factories are working off €3.80/kg for heifers and €3.75/kg for bullocks.

There are some larger suppliers who have gotten €3.85/kg for heifers on Monday. Bullocks are generally trading off €3.70/kg to €3.75/base.

Flat deals

Flat deals have also come into the fray for poorer-grading cattle, with €3.65/kg minimum base on offer on mixes of O and P grading cattle, excluding in-spec bonuses.

Hereford and Angus stock remain in firm demand, with bonuses of up to 20c/kg available for bullocks and heifers that meet the specifications for Angus and Hereford schemes.

Cows have seen an improved trade over the last few days, with R grading cows now trading at €3.30/kg to €3.40/kg.

Some factories that specialise in the cow trade have paid €3.50/kg this week for top-quality U grading cows. O grading cows are trading off €3.10/kg, with P grading cows back at €3.00/kg.

Finished cattle supplies remain extremely tight, with factory agents reporting lower than usual numbers being finished in sheds for January killing.

The kill for the week ending 4 December was down 2,015 head. Department of Agriculture AIMS figures would also suggest lower numbers coming on stream for the first six months of 2021.

Everything hinges on Brexit

Everything hinges on whether there will be a deal done on Brexit this week. If there is a deal done, it could put pressure on prices in the short term as factories ease back on getting product into the UK ahead of the deadline.

If no deal is completed, there is an increased chance of a buying frenzy over Christmas to get beef in to avoid tariffs of 70c/kg in January.

Some industry sources have pointed to storage issues in the UK curtailing the amount of beef that can be stockpiled, but the Irish Farmers Journal understands that all avenues are being explored to store chilled beef ahead of 31 December.

Given the movement in markets and all the different cogs in the wheel that is UK-Ireland trade, the Irish Farmers Journal livestock team will be updating farmers on a daily basis this week to make sure farmers are informed of any changes taking place in the market. Stay tuned to www.farmersjournal.ie for updates.