A number of sellers are reporting being initially offered a lower base price of €3.80/kg for steers and €3.90/kg for heifers in negotiations with factory agents. However, these lower opening quotes are quickly being raised back to a base of €3.85/kg for steers and €3.95/kg for heifers when factories are pushed to it or fear they may lose out on the sale.

Some agents that had come into more cattle on the back of heavy rainfall are also reporting less pressure on producers to move stock since the end of last week, with mixed tillage/beef producers also taking advantage of the short-term upturn in the weather forecast to concentrate on harvesting spring crops.

This is reducing throughput, although it is being balanced somewhat by more steers approaching 30 months of age and being traded before losing out on the 12c/kg quality payment scheme (QPS) bonus.

Bulls remain a firm trade with Rs and Us selling in the main at a base of €3.80/kg and €3.90/kg respectively. With the bull kill falling close to just 2,000 head, a high percentage are being traded by specialised finishers commanding a price or bonus payment above this. Friesian bulls are trading from €3.65/kg for plainer quality types up to €3.75/kg for well-fleshed O=/+ grading lots.

Steady cow trade

Some in the beef industry feel the cow kill will continue without any big flush in numbers. That is provided dairy farmers are armed with suitable weather to see them continue to milk on later in the year, similar to 2015.

P+3 and O grading cows are trading from €2.90/kg to €3.05/kg and €3.00/kg to €3.15/kg respectively. R grades are selling from €3.25/kg to €3.35/kg with U grades to €3.50/kg at the top end of the market in cow specialist plants.

The schools reopening across our main markets in the UK and the EU will also lead to a rise in beef demand

Commenting on the trade, IFA national livestock chairman Angus Woods said “the cattle trade is solid this week with factories paying a base price of €3.85 for steers and €3.95 for heifers. With the good weather farmers are very busy and factories are finding it very difficult to get adequate numbers and in some cases in the last week, top prices of €3.90/kg and €4.00/kg were paid to get stock. The schools reopening across our main markets in the UK and the EU will also lead to a rise in beef demand as is normal at this time of the year."

Firm NI and British trade

The Northern and British trade continues to benefit from a more competitive edge in export markets and the supply-demand balanced favouring producers. Base quotes for U-3 steers and heifers remain at £3.34/kg to £3.36/kg in Northern Ireland, which with sterling trading at 85p to the euro is the equivalent of €4.13/kg to €4.15/kg.

Reports indicate however that there is still much scope to negotiate higher with in-spec steers and heifers commanding over £3.40/kg (€4.20/kg). The trade continues to lag behind British prices, where R4L steers and heifers are breaking through the £3.60/kg barrier (equivalent €4.45/kg including VAT).

Read more

Prices drop with quality and choice at Bandon mart