What a difference a week can make in the beef trade. Last week, there were still some farmers killing heifers at €3.90/kg base price.

This week, quotes for heifers have dropped to as low as €3.70/kg in some plants.

There are some smaller plants still paying €3.80/kg for heifers, but the big three players in the market – Dawn, Kepak and ABP – have moved to take back control of the beef trade, with all plants working off combinations of €3.70/kg to €3.75/kg for heifers and bullocks.

ADVERTISEMENT

Breed bonuses have been cut, especially on the Aberdeen Angus side, with bonuses dropping from 25c/kg to 10c/kg in some cases.

Hereford bonuses are still available in the main plants, with 10c for O grades and 12c/kg for R grading heifers and bullocks if deemed in-spec.

Cows have held in price, with very little movement over the last few days, with P+3+ cows being quoted around €3.00/kg to €3.05/kg.

O grading cows are being quoted at €3.05/kg to €3.15/kg, while R grading cows are generally moving at €3.20/kg to €3.30/kg. R grading cows have taken the biggest hit, back 10c to 15c/kg in the last week.

Bulls are doing relatively well considering the cuts to other stock. R grading bulls are still trading at €3.70/kg, with U grading bulls trading at €3.80/kg.

O grading dairy bulls are at €3.70/kg to €3.75/kg depending on quality and level of finish. Under-16-month bulls are generally moving off a €3.70/kg to €3.75/kg base price.

Winter finishers are in a bad place yet again. Farmers who killed heifers at €3.70/kg off the grass last August are being asked to take the same money coming out of a shed.

It shows complete disregard for the cattle-finishing business and will eventually shift people back to seasonal beef production killing the majority of cattle in autumn.

At current costs, winter finishers need a minimum of €4.50/kg to break even – 80c/kg off current base quotes. Cattle being killed this week are losing between €200 and €300/head

The big question is how long the current cuts will last for. Feedlots and large factory-aligned finishers are still very active around mart rings in recent days, showing no sign of dropping off cattle.

Many have received assurances of a big demand for retail beef ahead of the Easter holidays in early April.

Last week’s kill was 30,454, down 759 head on the week before. The heifer kill is tumbling, with 2,307 fewer heifers killed in the week ending 6 February compared with the previous week. Numbers are expected to drop further next week.

IFA livestock chair Brendan Golden said: “The sudden attempt by factories to drop prices this week is not reflective of conditions in our key export markets and the performance of the supermarket trade for beef.”

NI comment

Factories in Northern Ireland have cut base quotes by 4p/kg bringing U-3 grading animals to a base of 372p/kg (€4.40/kg).

However, the lower base price does not appear to be sticking, with regular finishers reporting in-spec steers moving around 384p/kg (€4.55/kg) and heifers making upwards to 390p/kg (€4.61/kg).

The lower base quote has brought the price of Angus cattle back in line with conventional cattle.

Demand for cull cows is solid and quotes remain on 275p/kg (€3.25/kg) for R3 animals, with deals of 300p to 310p/kg (€3.55 to €3.67/kg) still be offered for good-quality suckler types.