This is a subscriber-only article
Factories remain anxious for cattle under 30 months of age, but are digging in their heels and resisting upward price pressure. A high percentage of steers continue to trade off a base of €3.45/kg, while the majority of heifers are trading on a base of €3.45/kg to €3.50/kg. There are small numbers trading 5c/kg higher, with demand continuing to be strongest in the northwest.
This is in contrast with Northern Ireland where prices have edged up again. Last week’s prime cattle kill in the North was steady at 7,097 head, but the cow kill continues to fall (down 172 head to 2,211).
There is a variance in prices paid between and even within plants, depending on the number of cattle offered.
U-3 steer and heifer base quotes range in general from £3.30/kg to £3.36/kg or the equivalent of €3.85/kg to €3.92/kg at 85.7p to the euro excluding VAT.
Regular sellers are securing a base of £3.40/kg (€3.97/kg), while at the top of the market traditional breed animals traded under producer schemes are topping a return of £3.60/kg (€4.20/kg). This is leaving Irish prices falling well behind, with a growing differential also opening up with other nations (see page 21).
Back to the Irish trade, cattle aged over 30 months are, in cases, moving a little faster, but this is very much dependent on whether the batch includes all cattle over 30 months old or a mixture of under and over 30 months.
Greater demand continues to be underpinned by a combination of filling Christmas orders and sourcing cattle whose meat is eligible for export to China.
Last week’s throughput of 39,551 was the highest kill of the year and represented an increase of 457 head on the previous week.
This was driven by the bull kill increasing 555 head to 4,049, while cow throughput rebounded and rose 479 head to 8,059.
Tighter steer and heifer supplies are reflected in 341 fewer steers (15,503) and 177 less heifers (11,295) handled.
The kill was 793 head lower than the comparable week in 2018, with that kill of 40,344 the highest for some time.
Bull prices are steady at a range of €3.40/kg to €3.45/kg for R grades and €3.50/kg to €3.55/kg for U grades, while O grading bulls are trading from €3.15/kg to €3.30/kg.
Bulls less than 16 months and trading on the grid are selling on a base of €3.40/kg to €3.45/kg. Farmers should note the QPS in-spec bonus remains at 12c/kg for bulls and also enquire about carcase weight limits, with some factories penalising over 400kg carcase weight.
The cow trade is unchanged. P+3 grading cows range anywhere from €2.50/kg to €2.70/kg, with O grades from €2.70/kg to €2.85/kg and R grades in the main selling from €2.90/kg to €3.00/kg.
U grades range anywhere from €3.00/kg to €3.25/kg, with plants specialising in the cow trade keen for young heavy fleshed cows, with price variation shown in the Department prices.
Chinese market
With continued reports of beef imports surging upwards in China, there has been increased discussions regarding specific requirements for the market. Products exported are mainly forequarter cuts from cattle aged under 30 months.
The supply pool is being reduced by the requirement for animals to come from herds which are free from TB for at least 12 months.
This requirement also eliminates a big supply of cattle, with herds operating with feedlot status not eligible.
SHARING OPTIONS: