Beef quotes are about to turn the corner and increase, as demand exceeds supply across the country.

Factories had been managing to keep a lid on base prices up until the end of last week, but a number of processors have had to increase quotes this week to secure supplies.

Further increases have been indicated by a number of processors for next Monday, with increases of 5c/kg being quoted across the board.

Last week’s kill was back over 600 head on the week before and this week’s kill is expected to be down further.

Strong retail orders

Strong retail orders have pushed factories to marts in order to purchase cattle for slaughter, with premium lines for Hereford and Aberdeen Angus in exceptional demand over the last seven to 10 days.

This has meant some factories are scrambling for supplies to fill important pre-Christmas retail orders across the water. The next two weeks are crucial for processors to fill retail orders.

This week, heifers are working off €4.20/kg to €4.30/kg, with €4.35/kg being paid at the top end of the market.

Bullocks are trading at €4.15/kg to €4.20/kg, with €4.30/kg being paid in some locations to the bigger suppliers.

Despite factories concentrating on the prime cattle kill over the last week, cows remain steady, with prices ranging from €3.45/kg for a P+3 cow to €4.00/kg for a U grading suckler cow.

With smaller-scale feeders shying away from winter finishing this year due to high store and meal prices, it's understood that a number of factories have had to increase the amount of contracts issued compared to other years to guarantee supply in the first six months of 2022.

This has seen a slight lift in trade over the last week for forward store cattle in marts.

For more market analysis, see this week’s Irish Farmers Journal.