Factories continue to heap pressure on finishers with a further 5 cent/kg cut to beef quotes

Bullocks are being quoted at €4.85/kg a 5c/kg drop on most quotes from last week with many agents pointing to a further 5cent/kg cut to come next week which will leave bullocks on €4.80/kg.

Heifers are working off a base of €4.90/kg with a few plants still paying out €4.95/kg to regular customers with numbers.

The only chink of light in the trade this week is that factory agents appear a little more anxious this week for stock. Shed cattle have almost all dried up with the first of the grass cattle starting to come on stream.

NI Interest

Increased interest from Northern Ireland has also been seen this week with a number of loads of finished animals moving for direct slaughter to NI over the last week, along with a number of NI buyers back both online and ringside in southern marts looking for finished animals.

There were 595 cattle sent north for direct slaughter last week, the 2nd highest number so far in 2023. There have been almost 10,000 cattle sent to NI for direct slaughter in the first 6 months of 2023, an increase of almost 2000 head on the same period in 2022.

Price differential

The current 53 cent/kg price differential is worth over €200/head and could see more animals moving north in the coming months if NI prices hold.

These agents operating in southern marts have been especially active for heavy stock bulls and cows for the wholesale market.

There is a fear in NI circles that the drop in Irish prices over the last number of weeks could put pressure on the NI beef market. This is also evident across the water as lower Irish beef prices put pressure on prices of UK product.

The cow trade is also taking its share of cuts with P+3+ cows being quoted at €3.80/kg in a few factories this week with further cuts to quotes also being signalled.

R grading are being quoted from €4.20-€4.30/kg depending on the factory while O grading cows are working off quotes of €4.10-€4.20/kg. U grading cows are being quoted at €4.40-€4.50/kg this week.

Base prices for under-16-month bulls are coming in at €4.85-€4.90/kg.

Young under-24-month bull quotes are also under pressure with U grading bulls now back at €5.00/kg to €5.10/kg.

R grading under-24-month bulls are being quoted at €4.95/kg to €5.05/kg, with O grading bulls back at €4.80/kg to €4.90/kg.

P grading under-24-month bulls are working off €4.70/kg to €4.80/kg this week.

Last week’s kill came in at 32,960 cattle. The bull kill saw the biggest drop with almost 600 less bulls killed last week. The bullock kill saw a big lift with 800 extra bullocks killed last week. The cow and heifer kill remained at a similar level to last week.

Across the water some reductions in prices have been seen in the last week, with R4 bullocks and heifers down to 480p/kg (€5.90/kg incl VAT). However, this is still 70-80 cent ahead of the equivalent bullock being killed in Ireland. This equates to an almost €300/head difference in finished animal prices.

NI Comment

Factories have made cuts to base quotes for prime cattle and cull cows this week.

A 6p/kg cut brings U-3 steers and heifers to a base of 462p/kg (€5.67/kg inc VAT), but deals are running around 474p to 478p/kg (€5.81/kg to €5.85/kg) for the majority of in-spec animals.

Bulls are moving from a base of 470p/kg (€5.76/kg). Cull cows are holding steady around 400p/kg (€4.90/kg), although quotes are down 10p/kg.