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Beef processing activity has reduced as the week progresses in line with farmer protests extending to more factories.
Some factories where protests commenced on Tuesday pre-empted disruption and had lairages full in advance, but for those where protests commenced on Monday, throughput was well down for the first three days of the week.
The 5c/kg price cut which started to circulate in negotiations last week has been introduced to varying degrees.
This leaves a high percentage of steers trading at a base of €3.45/kg, with select deals at €3.50/kg, while heifers are trading in the main on a base of €3.50/kg to €3.55/kg.
Prices are running 35c/kg to 40c/kg behind the corresponding week in 2018. This leaves a typical steer carcase weighing 360kg realising a €125 to €145 lower sale value, while heifers weighing 330kg carcase weight are down €115 to €132 on average.
Bull prices are facing an even greater fall in farmgate prices when compared with the corresponding period in 2018.
Average factory prices are 40c/kg to 45c/kg lower. Taking two carcase weights, returns are back by €152 to €171 for a 380kg carcase, while a heavier carcase of 430kg shows a fall in price of €170 to €194.
It should be noted that these are average figures. Finishers taking bulls to much heavier weights or with stock not qualifying for the QPS are facing a significantly higher drop in returns.
There is variability in the price offered to farmers, with a significant differential between, and even within, plants.
U grading bulls are trading from €3.45/kg to €3.55/kg, while R grades range anywhere from €3.40/kg to €3.50/kg. The greatest variability is with O grading bulls, which range from €3.15/kg to €3.30/kg. Bulls less than 16 months and trading on the grid are trading on a base of €3.40/kg on average, although some plants are trying to bring this back to €3.35/kg.
A number of plants are also reported as having very little interest in accepting under-16-month bulls.
This is casting further uncertainty over the future of bull finishing systems.
As discussed on page 59, Irish prices have now fallen well off the pace in comparison with EU markets in which we trade into.
Cull cow prices are holding because of tight numbers and firm appetite. Last week’s cow throughput was recorded at 6,541 head, which is 1,075 lower than the corresponding week in 2018. There was also no change to cow throughput last week, with 2,710 fewer steers and 1,100 less heifers.
P+3 grading cows are trading from €2.80/kg to €2.85/kg on average, while O grading cows are averaging from €2.95/kg to €3.05/kg.
Many plants are trying to buy R grading cows at €3.05/kg to €3.10/kg, but an extra 5c/kg to 10c/kg is being paid for the best-quality lots. U grading cows are small in number, with top prices rising to €3.30/kg or slightly higher.
Northern trade
Beef prices in the North have weakened to the tune of 2p/kg to 4p/kg. Base U-3 steer and heifer quotes range from £3.20/kg to £3.22/kg. Sterling has gained further ground and at 90.8p to the euro, this equates to €3.52/kg to €3.55/kg and €3.71/kg to €3.74/kg including VAT at 5.4%.
Top prices are 2p/kg to 4p/kg higher, with regular sellers struggling to pass this mark. The AHBD reports a marginal increase of 0.4p to 0.7p in British cattle prices. This leaves R4L steers and heifers averaging £3.39/kg (€3.73/kg).
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