Attempts by factories to pull beef prices back have been variable in success. While plants are targeting a base of €4.20/kg for heifers and €4.10/kg for steers, there are still farmers with significant numbers or greater negotiating power securing an extra 5c/kg.

Reports suggest there is more scope to negotiate €4.25/kg on heifers, over €4.10/kg for steers, with more steers in the market. The best demand is for lots under 30 months of age and delivering lighter carcases (under 380kg).

In some cases, plants are quoting 5c to 10c/kg lower where they know cattle are aged over 30 months of age or carcase weights are likely to significantly exceed 400kg.

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Farmers should take note that while some factory agents are quick to talk the trade down further, they are unwilling to lose stock to any competing buyer and in many cases have improved quotes offered.

While the trade in Britain has eased slightly on the back of reported weaker demand for higher value cuts, the market remains strong, especially for manufacturing beef. This is evident in keen factory demand for bulls and cows.

IFA Livestock Committee chairman Henry Burns said feeders know that supplies are going to get tighter and are prepared to dig in on price and resist the factory pressure.

“Despite some posturing from the factories, they want the cattle and are afraid they will lose any to other factories. The change in sterling from 80p to 74p is worth an additional 39c/kg, or €140 per head, and is adding significant advantage to exports to the UK.”

Lower bull kill: The bull trade has been helped by tighter supplies, with last week’s kill falling from 4,410 to 3,905. R and U grade bulls are trading at €4.15/kg and €4.20/kg respectively.

Friesian bulls grading O=/+ and 2=/+ on fat cover are trading from €3.90/kg to €4.05/kg, with group size influencing prices. There are higher numbers of bulls finished under 16 months in the market. Many plants are reluctant to purchase these bulls on the grid, likely due to the higher sale value (conformation bonuses and potential 12c/kg QPS in-spec bonus).

The three main processing groups – ABP, Dawn Meats and Kepak Group – are most active, although individual plants within these groups are variable in activity. Bulls under 400kg carcase weight are trading at a base of €4.10/kg, with some plants cutting the base price by 10c/kg for bulls over 400kg deadweight.

Steady cow trade: The cow trade is unchanged. P+3 and fleshed O grading Friesian cows are trading from €3.20/kg to €3.50/kg, with large lots rising to €3.60/kg. R grades are trading anywhere from €3.50/kg in plants not active in the cow market to €3.70/kg, with specialised plants reported as paying from €3.80/kg to €4.00/kg for heavy carcase or young cows.

Irish price differential: The Irish versus UK beef price differential on a comparable 360kg R grade steer remains at over €300 per head, with changes in the value of sterling maintaining the differential despite UK beef prices falling back. The differential between Ireland and Italy has closed from close to €100 to €40 following a strengthening in Italian beef prices.