Cows and young bulls continue to benefit most from an increase in demand stimulated by supplies tightening in many areas.

Last week’s beef kill was recorded at 39,981 head. However, it should be pointed out that this included 3,118 calves, with calf throughput rising 697 head on the previous week.

Factories are keen to handle any increase in numbers of prime cattle and cows coming on stream. They are particularly anxious for cows, with the trade for manufacturing beef said to be performing strongly at present. Cow prices continue to creep upwards, with prices rising by an average of 3c/kg to 5c/kg over the last week.

Looking at the increase in cow prices since the start of the year shows O=3= cows rising 27c/kg to average €3.10/kg last week. R=3= cows increased by 23c/kg in the same time period and last week averaged €3.32/kg.

Department of Agriculture official reported prices show P+3 grading cows averaging in the region of €3.00/kg, while at the opposite end of the quality scale U grading cows averaged €3.45/kg. There is a swing of 5c/kg either side of these prices, depending on the negotiating power of sellers.

The increase in cow prices has occurred at a much faster rate than prime beef and has closed the gap between prices paid for cows and steers and heifers.

Looking at heifers, for example, shows prices rising 12c/kg in the same period, with R=3+ heifers averaging €3.91/kg last week. The gap is similar for O grades, with prices rising 11c/kg to average €3.80/kg.

Base prices for steers and heifers are moving upwards, but at a slower rate. The majority of heifers continue to trade off a base of €3.70/kg, but there are more sellers trading at the higher end of the market securing a base of €3.75/kg.

Likewise, steers continue to trade in the main at a base of €3.65/kg, but prices of €3.68/kg to €3.70/kg have been reported.

The young bull trade is also benefitting from a strong manufacturing trade, with specialist finishers securing an extra 5c/kg to 10c/kg in recent weeks.

U grading young bulls range from €3.65/kg to €3.75/kg. R grades are trading from €3.60/kg to €3.65/kg on average, but, again, up to €3.70/kg is being paid where small numbers are traded in batches of mainly U grading bulls. O grading Friesian bulls range on average from €3.40/kg to €3.50/kg.

Northern trade

There is a similar trend in the North. Last week’s prime cattle kill was steady at 7,143 head, allowing factories to retain control of prices at a U-3 base of £3.32/kg to £3.34/kg.

This equates to €3.95/kg to €3.98/kg at 84p to the euro and €4.17/kg to €4.19/kg including VAT at 5.4%. Top returns are rising to £3.40/kg (€4.27/kg), with heifers in cases 2p/kg to 4p/kg higher.

The cow trade is stronger, with R grades rising upwards from £2.65/kg and top prices in excess of £2.80/kg (€3.32/kg to €3.51/kg incl VAT).

British steer and heifer prices have strengthened by 1p to 2.3p/kg. This leaves R4L steers averaging £3.47/kg (€4.35/kg incl VAT), with heifers 2p/kg lower at £3.35/kg (€4.31/kg).

R grade young bulls average £3.29/kg (€4.13/kg), while O grade cows average in the region of £2.60/kg (€3.26/kg incl VAT).

The number of prime beef cattle aged 12 to 30 months in the British cattle herd on 1 January 2020 was 57,300 head or 3.1% lower than the corresponding date in 2019.

There is also contraction in the number of cattle aged under 21 months, with 21,000 head or 1.1% fewer animals on farms.

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