Beef prices are near a 10-year high, with strong demand and tight supplies forcing factories to scramble for finished cattle.

In the last week, prices have increased by 20c/kg in some factories, with heifers now being quoted at a base price of €4.50/kg to €4.65/kg. This leaves farmers with U-grading in-spec heifers securing a price of €4.88/kg to €5.03/kg when all bonuses are paid.

The bullock trade is also pushing ahead with base prices of €4.45/kg to €4.50/kg now widely on offer.

Smaller independent factories are anxious for cows, with some paying a flat price of €4.40/kg for R grades this week.

Confidence is also high around mart rings where factory agents have been active for forward bullocks and heifers suitable for slaughter.

An analysis of Irish Farmers Journal MartBids data shows that the top third of bullocks over 600kg sold for €2.83/kg this week, or €1,800/head, an increase of 50c/kg on the corresponding period last year.

The price rise comes as farm input costs are at an all-time high.

Ennis Mart held its annual fatstock show and sale last Friday, with 33% of the cattle sold at the sale exported to Northern Ireland

North of the border, bigger feeders have the ball at their foot, with some commanding a base price of £4.20/kg this week, the equivalent of €5.28/kg.

The price differential gap between prices in the Republic of Ireland and prices in Northern Ireland still stands at €200 but it has narrowed this week as southern factories increase quotes to secure supplies.

With short-keep cattle in low supply in NI this has turned many of the bigger operators south of the border. Ennis Mart held its annual fatstock show and sale last Friday, with 33% of the cattle sold at the sale exported to Northern Ireland.

Speaking to the Irish Farmers Journal, Clare Marts general manager Martin McNamara said: “Northern feeders are extremely strong at the moment. They’re working on a higher beef price, so they’re able to really push the southern factory agents around the ring in the last few weeks.

It’s been a long time since we have seen opposing factory agents competing so hard for cattle

“We had two lorry loads of 750kg bullocks gone to one northern customer last week at €2,156/head, or €2.88/kg. It’s been a long time since we have seen opposing factory agents competing so hard for cattle. They need them and they are willing to pay big money for them.”

Meanwhile, the UK cattle kill fell to a record low in January 2022 with the kill reducing by a massive 10% compared to January 2021.

Based on meal, fertiliser and store cattle costs, finishers had been shying away from buying animals without assurances on price from factories

This gap in supply has been filled by Irish suppliers and with no real recovery expected in UK numbers until the second half of 2022, factories have this week given the nod to feeders to fill sheds for an April, May and June slaughter.

Based on meal, fertiliser and store cattle costs, finishers had been shying away from buying animals without assurances on price from factories. Deals have been struck and feeders are back at the ring.

A combination of southern wholesalers and northern customers has also drove on the cow trade in the last few weeks.

Given consumer cost of living concerns and inflation issues starting to bite, the likelihood is that manufacturing beef will be a steady trade for the foreseeable future and this will underpin the cow trade right in spring and summer.