Reports from the factories suggest that a combination of fine weather and exhausted fodder supplies mean that prime beef cattle have become significantly harder to obtain this week.

As a result, beef prices are on the rise, and while processors are officially quoting 356p/kg to 360p/kg on U grading animals, farmers are managing to negotiate prices well ahead of these base quotes.

Prices of 362p/kg to 364p/kg are widely available as a starting point for steers and bulls with 4p/kg to 6p/kg more for farmers with bigger numbers to sell.

Demand for prime heifers is growing and farmers with good numbers to offload are in a strong selling position. Deals of 368p/kg to 374p/kg have been reported this week, some of which include haulage.

Such is the demand for cattle, the value of dairy-bred animals has increased significantly in recent weeks.

With factories chasing numbers, O grading cattle are now selling at prices above 350p/kg.

Demand for cows is also strong, and competition has increased for cows in the marts, with prices rising towards 210p/kg liveweight for continental-type, slaughter-fit cows. In general, 170p/kg to 200p/kg is on offer depending on age, quality and weight.

Britain

Across the Irish Sea the same trends are evident, with numbers tight and prices on the rise. Reports suggest that top-grading steers and heifers in the north of England are into the low 380s, and into the low 390s in Scotland. Prices there are expected to break the 400p/kg barrier in the coming weeks.

Looking ahead, with fewer slaughter cattle coming in for direct slaughter, and given that the NI cow and prime cattle kill is up by 14% and 3% respectively on last year, supplies look set to remain tight over the summer months.

2019

Moving into next year, sources in the trade have expressed some concerns about reduced suckler cow numbers, which is reflected in a 9% drop in calves registered to sucklers in the first four months of 2018.

Wet weather since last August has taken its toll, particularly in the west, and according to farmers in the area, the late spring will make it impossible to harvest enough grass to see them through next winter with current numbers.

UFU

Meanwhile, the new chair of the Ulster Farmers’ Union beef and sheep committee, Sam Chesney, has called on DAERA to ensure that provisions are included in a post-Brexit agricultural policy that acknowledge the economic, environmental and social importance of sucklers.

Quoting recent Livestock and Meat Commission (LMC) analysis of DAERA farm business survey results, which put the cost of production for suckler beef at 397p/kg in 2017/18, Chesney said it demonstrated the vulnerability of the sector.

“It will need assistance and this is why we are calling for a suckler cow scheme which can support efficient, grass-based production post-Brexit,” he said.

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