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The beef kill for last week was recorded at 40,039 head, the largest for the year to date. The fact that the kill exceeded the 40,000 head mark is a significant talking point, but, in truth, it just resumes what has become normal service since September.
Leaving aside the lower kill of 33,831 a fortnight ago, which in itself was a relatively high kill for a four-day week, the weekly kill has averaged 38,794 since the first week of September.
This is an average weekly increase of 1,757 head on the same nine weeks in 2017, which, in turn, was an average weekly increase of almost 2,000 head on 2016 throughput levels.
The higher levels of throughput have curtailed producer negotiating power. Demand for steers and heifers is steady, helped by factories turning their attention to supplying beef for the Christmas trade.
The majority of steers are trading on a base of €3.75/kg, with heifer quotes 10c/kg higher at a base of €3.85/kg. There are small numbers trading on a 5c/kg higher base.
Last week’s steer throughput was recorded at 16,096 head, with heifer throughput of 10,369 the highest for the year to date.
There are also more cows coming on to the market, reflected in what was also a year-high kill of 9,403 head.
The extra cows coming from dairy farms and preference for steer and heifer beef for the Christmas trade has put pressure on the cow trade, with quotes dropping by 10c/kg to 15c/kg in places.
P+3 grading cows are quotes anywhere from €2.80/kg to €3.00/kg, with most now dropping below the €3.00/kg mark. O grades range from €2.90/kg to €3.15/kg, while R grades have eased in places, opening up a higher price range of €3.20/kg to €3.40/kg.
Factories are managing throughput much closer this week, which is also the case as more bulls are coming fit for slaughter. R grade bulls are trading on average for €3.75/kg, with a swing of 5c/kg depending on negotiating power and the quality of bulls on offer.
Meanwhile, U grades are trading in the main from €3.85/kg to €3.90/kg. This excludes bonus payments secured by specialist finishers. O grading bulls are trading from €3.60/kg to €3.70/kg, with numbers, flesh cover and carcase weight all influencing prices paid for Friesian and dairy-cross bulls.
The latest LMC market report forecasts the recent strong throughput levels in northern plants to persist until at least early next year. This is based on the number of beef cattle in the 18- to 24-month age category in October 2018 holding firm on year-previous levels at 196,044, while numbers in the 24- to 30-month age category are also unchanged at 97,773. Longer-term supplies look set to tighten, with 146,207 head in the 12- to 18-month age category down by 2.7%, with the six- to 12-month age category down 6.1% to 227,851 and the zero- to six-month category down 5.8% at 127,113.
While last week’s kill eased slightly, it is still holding strong. Base U-3 steer and heifers quotes remain at a range of £3.48/kg to £3.54/kg.
Sterling strengthened further to 86.8p amid Brexit negotiations, leaving this at the equivalent of €4.01kg to €4.08/kg or €4.23/kg to €4.30/kg when VAT at 5.4% is factored in. Regular sellers are securing 2p/kg to 4p/kg higher, with top returns rising to £3.60/kg (€4.37/kg incl VAT).
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