While last week’s beef kill reduced by 349 head to 37,700, it remains well above normal for the time of year.

Throughput was recorded at 3,518 head above the corresponding week in 2018, with the cumulative kill running 11,340 head higher for the first five weeks of 2019.

The additional throughput can be broken down into 5,069 extra heifers, 3,825 cows, 1,667 young bulls and 795 steers.

Increased processing activity is being underpinned by greater numbers currently in the national herd.

Analysis of the latest Department of Agriculture AIM data for 1 December shows 23,620 additional beef-bred heifers in the 12- to 18-month age bracket, 837 in the 24- to 30-month bracket and 3,525 in the 24- to 30-month category.

This is the driving force behind the higher heifer kill, with the majority of these dairy-crosses, many of which are coming fit for slaughter at a younger age.

Steer supplies in the same age categories are pretty static, with about 30,000 higher beef-sired males largely cancelled out by over 36,000 fewer Friesian males. The main change here is higher availability of bulls.

The strong throughput is leaving factories with the upper hand in negotiations. Steers continue to move on a base of €3.75/kg, with heifers 10c/kg higher at €3.85/kg. There is very little differentiation to these prices.

Bulls continue to meet a varied trade. Prices remain moveable, particularly when penalties on weight, age and fat score (2-/2=) are taken into account, which range in general from 10c/kg to 15c/kg on each element.

Average prices for U grading bulls before deductions start at €3.60/kg to €3.75/kg, with R grades 10c/kg lower, while Friesian O grading bulls with sufficient fat cover range from €3.40/kg to €3.50/kg.

The cow trade is steady, with P+3 grades continuing to move at an average range of €2.60/kg to €2.70/kg for P+3 grades, while a high percentage of O grades are trading from €2.80/kg to €2.90/kg.

R grades are trading on average from €3.00/kg to €3.10/kg, but up to €3.20/kg has been paid for young heavy carcase cows and cow heifers.

The same trend is evident for U grades, with prices ranging anywhere from €3.20/kg to €3.40/kg in plants most active in the cow trade.

A strong mart trade for these type of cows is also benefitting from the presence of northern wholesale buyers who have been much more active in recent weeks for slaughter-fit cattle. This is reflected in the number of cattle moving north for direct slaughter being at its highest level for some time at 629 head.

Northern trade

In contrast to higher exports north, factories are trying to talk the trade back, with some reducing quotes by 2p/kg.

Base U-3 steer and heifer quotes range from £3.40/kg at the lower end of the market to £3.44/kg. With sterling trading at 87.8p to the euro, this equates to €3.87/kg to €3.92/kg and €4.08/kg to €4.13/kg including VAT at 5.4%.

Sellers with good negotiating power are still securing returns rising to £3.50/kg (€4.20/kg), with top prices 2p/kg to 4p/kg higher. Good-quality R grading cows are being quoted at £2.50/kg to £2.60/kg (€3.00/kg to €3.12/kg).

After a short-lived steadying in British beef prices, the AHDB reports an easing in last week’s trade. Heifer and steer prices reduced on average by 0.5p/kg and 1.5p/kg respectively, with R4L steers trading at £3.62/kg (€4.35/kg) and R4L heifers 2p/kg lower. Young bulls weakened by 4p/kg, with R3 grades averaging £3.42/kg (€4.11/kg).

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Northern view: steady beef trade as supplies increase