Downward pressure on beef prices continues. A high percentage of this week’s kill have been purchased at a base of €3.75/kg for steers and €3.85/kg for heifers, but many factories are pushing hard to take another 5c/kg off prices for cattle moving at the end of this week and next week.

Some finishers trading at the top of the market continue to secure 5c/kg above the general run of prices.

Factory appetite is solid, which is at least a small positive, with most plants happy to increase processing activity to handle the higher numbers coming on stream.

Last week’s kill increased 475 head to reach 38,447. The heifer kill increased 848 head to 10,105, while the cow kill reduced 123 head (8,161), the steer kill eased marginally by 105 head to 17,025 and young bull throughput reduced 74 head to 2,495.

Throughput is running 2,343 head above the corresponding week in 2017, with year to-date throughput up 42,618 head.

Speaking at this week’s National Ploughing Championships, Bord Bia’s Joe Burke said the higher numbers are not directly translating into higher volumes of beef due to lower carcase weights.

Average weights

The average weight of steer and heifer carcases is 8kg lower for the year to date, with the average carcase weight of cows almost 15kg lower at 300kg. This is not surprising, given the growing influence of dairy genetics in the national herd, lower liveweight of dairy cows and greater use of sires selected on calving ease and possessing poorer beef characteristics.

While steers make up over 44% of the kill, there is also downward pressure on cows and bulls, despite the relatively lower throughout levels.

R grading young bulls are trading at a price range of €3.70/kg to €3.80/kg, with U grading bulls trading on average from €3.85/kg to €3.90/kg.

Bulls less than 16 months and trading on the grid are, in the main, at a base price of €3.75/kg, but factories are now also trying to reduce base quotes to €3.70/kg.

As is the case with steers and heifers, regular sellers continue to secure 5c/kg higher. The differential in prices paid for cows is widening. Some plants have reduced quotes for P+3 and O grading cows to €2.90/kg and €3.00/kg respectively, while others continue to quote €3.00/kg and €3.10/kg.

Again, prices at the top end of the market are 5c/kg to 10c/kg above this.

Heavy R and U grading cows are meeting solid demand, with this best reflected in demand in mart sales.

The prices paid demonstrate that regular sellers are securing well above the quoted prices of €3.30/kg to €3.35/kg for Rs and €3.45/kg to €3.50/kg for Us.

Northern trade

The northern trade does not possess the same life as last week, but is still solid.

Most plants remain on a U-3 base quote of £3.54/kg to £3.56/kg, which equates to €3.98/kg to €4.00/kg at 88.8p to the euro or €4.20/kg to €4.22/kg including VAT at 5.4%.

Factories have curtailed top prices paid, with regular sellers securing up to £3.60/kg (€4.27/kg) for steers, with a chance of securing 2p/kg to 4p/kg higher for heifers at the top end of the market.

The number of cattle exported north for direct slaughter remained steady last week at 390 head.

British beef prices are steady, with R4L steers and heifers averaging £3.80/kg (€4.51/kg).

Friesian cows are selling from £2.60/kg to £2.70/kg (€2.95 to €3.07), with better-quality O grade cows making from £2.90/kg to £3.00/kg (€3.30 to €3.41).

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Northern view: beef trade steadies as supplies increase