Prices for finished cattle look set to break the 400p/kg barrier as processors grow increasingly concerned about short-term supplies.

Farmers offloading cattle report deals of 390p/kg being widely available midweek for U grading animals.

At the upper end of the market, regular sellers have secured deals of 394p/kg to 398p/kg, although these prices include premiums for supplying in-spec animals.

Cattle at or close to finish, and likely to be U-grading, are typically making 230p/kg, with specialist finishers competing against buyers for factory feedlots

Such is the shortage of cattle at present, several farmers report they had multiple calls from cattle agents over the bank holiday weekend, despite plants being closed for the Easter holidays.

In the live ring, mart managers report that numbers of short-keep cattle are dwindling. Cattle at or close to finish, and likely to be U-grading, are typically making 230p/kg, with specialist finishers competing against buyers for factory feedlots.

Premium breeds

While factory prices for continental cattle are edging upwards, steers and heifers processed through premium breed schemes have already gone well beyond the 400p/kg mark.

Farmers selling cattle under the Tesco Aberdeen Angus Scheme through Foyle Food Group indicate that 420p to 430p/kg is being paid when bonuses are applied. Crucially, the scheme used the English R4L price as a base.

Having generally matched NI beef prices over the last 12 months, the beef trade in Britain is driving on.

Price quotes range from 410p to 415p/kg for R4L steers and heifers, with U grading animals commanding upwards on 430p/kg this week as the availability of finished cattle continues to shrink.

Lower kill

While the beef trade in NI has benefitted from higher retail sales during the current lockdown, factory throughput is significantly lower year on year.

During quarter 1 of 2021, the prime kill totalled 78,486 head, down from 89,607 in the same period during 2020. It is the lowest first-quarter kill in five years.

Buoyant price

Finished cattle prices are currently running 45p/kg ahead of the same period last year. The actual prices paid for U3 steers and heifers last week averaged 388.9p/kg and 389.3p/kg respectively.

Since 1 July 2020, market reports show that U3 steers prices have exceeded 370p/kg on 31 out of 39 weeks, while U3 heifers have exceeded 370p/kg on 34 of those weeks. It is the longest run of sustained prices above 370p/kg since 2013.

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