There was a slight reduction in last week’s beef throughput. The overall kill figure of 38,198 head only reflects a reduction of 372, but a sharp rise in calf throughput masks the full degree of the change in the beef kill.

The number of calves processed increased 819 head to 1,126, so when taken into account, last week’s kill of cattle fell by 1,180 head.

The kill is running over 2,000 head above the corresponding week in 2018, with year-to-date throughput running 17,256 head higher for the first seven weeks of the year.

The greatest change in last week’s kill was in heifers, with throughput easing 737 head to 10,760. This figure still remains well ahead of normal levels for the time of year, with the trade continuing as is on a base of €3.85/kg.

There is continued firm appetite in mart sales for forward store heifers, with factory agents especially active and competing with finishers buoyed by strong grass supplies. Steer throughput, at 11,752 head, and the base price, at €3.75/kg, are also unchanged.

The mood among beef finishers is very low and reports are variable on finishers restocking sheds.

A significant percentage are resigned to facing considerable losses, with prices holding steady since last September and falling some 40c/kg to 60c/kg lower than that required to generate a positive margin.

Others are restocking sheds and targeting reduced throughput forecast in the period April to June in the hope of clawing back some of their losses.

The cow trade tightened 559 head last week with a kill of 7,422 head. Mart sales have also recorded lower cow entries this week, which is helping to contribute to a slight increase in demand.

Prices have not changed significantly in the factory, but sellers are getting cows away easier, with some agents starting to look for cows.

P+3 grades range from €2.65/kg to €2.75/kg, with O grades from €2.80/kg to €2.90/kg and R grades on average from €3.00/kg to €3.10/kg.

Higher prices are being commanded by dealers for heavy R+ and U grading cows, with young cows particularly sought after. The mart trade remains a good outlet for these cows.

Factories continue to work through a backlog of bulls, which appears to be slowly declining.

Last week’s throughput was steady at 6,460 young bulls, which is 1,422 head higher than the comparable week in 2018.

The risk of bulls falling out of spec from delayed processing is demonstrated in the mature bull category increasing by another 124 head to throughput of 647.

There is as much as a 30c/kg to 40c/kg difference in prices paid for bulls grading similarly, but delivering significantly different carcases in terms of carcase weight.

The general prices quoted before any deductions are accounted for range anywhere from €3.55/kg to €3.70/kg for U grades and €3.40/kg to €3.60/kg for R grades, while O grades are facing a wider variation of €3.10/kg for plainer-quality O- grading bulls to €3.40/kg for better-quality types.

Northern trade

The northern trade is stickier, with a backlog in numbers reported to be building.

Prices for U-3 cattle have eased 2p/kg, with the general range at £3.40/kg to £3.42/kg, while some plants are quoting as low as £3.30/kg to £3.36/kg. This equates to €3.80/kg to €3.87/kg at 86.9p to the euro and €4.00/kg to €4.07/kg including VAT at 5.4%.

Reports indicate prices paid to finishers trading at the top of the market are also being curtailed closer to base quotes.

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Northern view: processors move to cut beef prices as hogget trade eases