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Last week’s beef kill recorded an increase of 1,482 head to reach 36,970. The week-on-week change was driven by steer throughput rising 1,604 head, with total steer throughput of 16,961.
Heifer throughput also increased marginally by 234 head to 9,247, while, in contrast, cows and bulls recorded a marginal decrease of 149 head and 133 head to 2,546 and 7,483 respectively.
The kill is 1,337 head above the corresponding week in 2017, with steer throughput running marginally behind, while cow and heifer throughput is up 650 and 655 head respectively. Looking at the total kill, year-to-date throughput is now running some 37,805 head above 2017.
Demand for beef remains solid, but the additional numbers coming on stream has allowed factories to continue to put downward pressure on prices. Prices are slipping by another 5c/kg, with the most pressure on steers. Many plants are quoting a base of €3.80/kg, with supplies greatest in the southeast. There are some deals being completed at a base of €3.85/kg, but these are getting scarce as the week progresses. Base heifer quotes range from €3.90/kg to €3.95/kg, with the lower number giving sellers with choice lots more negotiating power and a better chance of securing a base of €3.95/kg.
While the cow kill has not increased for the last three weeks, pressure on prime cattle prices has also crossed over to 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.
With more cows coming straight from the parlour, sellers with poor-quality cows should enquire about potential cuts, with poorly fleshed or conformed and light-carcase cows selling for over €1/kg lower. 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.
The general quotes for bulls are also 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 now faced in pushing prices above €4.00/kg.
Northern trade
Last week’s report from the LMC highlighted a widening differential between British and Northern Irish 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.
The lift in northern prices while Irish prices have fallen has opened up the opportunity for exports north for direct slaughter ,with 233 last week. It is still a fraction of previous years’ levels, with total numbers for the year to date at 2,199 compared with 8,986 for the same period in 2017, with beef now moving north dead as opposed to on the hoof. Numbers moving north to south are 925 head higher year to date at 5,877.
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