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Beef producers continue to face a challenging trading environment, with factories determined to pull prices back.
There are high numbers of steers moving at the start of the week at a base of €3.85/kg for steers and €3.95/kg for heifers, but sellers negotiating deals for later in the week are being quoted a steer base of €3.80/kg and heifer base of €3.90/kg.
Throughput remains high, but, at the same time, demand is solid, with plants keen to maximise throughput.
The facts that beef prices in the UK have strengthened in recent weeks and the sterling to euro exchange rate appears to have steadied around 90p are surely providing scope for Irish beef exports into the UK to continue to record higher volumes.
Cows
The downward pressure on prime cattle prices is also starting to crossover to cows, with numbers also showing signs of increasing, as dairy farmers begin to cull empty cows.
P+3 grading cows are now quoted in many plants at €3.00/kg to €3.05/kg, with O grading Friesian cows from €3.10/kg to €3.15/kg.
There are still sellers securing 5c/kg to 10c/kg higher, while better-quality O grading Friesian cows capable of delivering a carcase in excess of 280kg to 300kg and suckler-bred O grades are selling, in cases, from €3.20/kg to €3.30/kg.
R grading cows are quoted anywhere from €3.30/kg to €3.45/kg, while specialist plants continue to pay up to €3.50/kg and higher for heavy fleshed cows, with top prices for U grades rising on average to €3.60/kg.
Bulls
The general quotes for bulls are being targeted, which is also leading to a differential between prices paid to producers with small numbers and those with higher numbers on offer.
Some plants are trying to reduce R grade quotes to €3.80/kg, but as high as €3.90/kg is still being paid.
Likewise, U grade bulls range from €3.90/kg to €4.00/kg, with more difficulty is now faced in pushing prices above €4.00/kg.
Northern trade
Last week’s report from the Livestock and Meat Commission (LMC) highlighted a widening differential between British and Northern Irish prices, a situation that is also occurring to an even greater degree with southern prices.
It highlighted the differential as increasing to 15.2p/kg, over twice the average level of 7.1p/kg recorded in the early part of the year.
The latest R3 steer and heifer price reported in the North stands at an average of £3.58/kg or the equivalent of €3.97/kg at 90.2p to the euro and €4.18/kg including VAT at 5.4%.
This compares with the AHDB reported R3 price of £3.72/kg or €4.35/kg.
Quotes in Northern Ireland remain firm this week, with plants looking to source higher numbers.
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