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A severe scarcity of finished cattle, and strong competition among factories trying to fill orders, has resulted in deals offered for suitable in-spec cattle of over 350p/kg.
Official base quotes for U-3 grading animals have risen by 8p to 330p/kg this week.
Reports suggest that some factory agents are going as high as 360p/kg to secure loads
However, farmers report that plants are offering 340p/kg as a starting price on steers and bulls, with heifers moving from a base of 344p/kg.
But any farmer with a load of cattle to sell has suddenly found themselves with a strong negotiating hand. Deals of up to 350p/kg have been done for steers, and up to 355p/kg for heifers. Reports suggest that some factory agents are going as high as 360p/kg to secure loads.
Cow trade
News that McDonalds and other parts of the food service sector are set to partially re-open next week has also seen processors looking to secure cows for manufacturing beef.
In Scotland, finished beef prices have increased by 8p to a base of 340p/kg for R4 grading animals
Prices reported on good-quality suckler bred cows are as high as 300p/kg this week, with plenty of factory agents buying in the marts, where 180p/kg is being widely paid.
The sudden jump in the NI trade means that prices paid here have moved into line with those in Britain. In Scotland, finished beef prices have increased by 8p to a base of 340p/kg for R4 grading animals, with an additional premium of 10p/kg on prime animals under 380kg carcase weight.
Mart trade
In NI marts, with demand strong for heavy cattle, good-quality bullocks up to 650kg are generally selling for 200/kg to 215p/kg. Even assuming a high kill-out of 57%, this equates to a beef price of between 350p/kg and 377p/kg.
Despite the welcome increase in prices, it is worth noting that our analysis last October showed that beef finishers needed a minimum 375p/kg for U-3 grades this spring to cover costs and leave a small margin.
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