Factories have moved to reduce beef quotes for the third week in a row, with many farmers also experiencing delays in getting animals slaughtered.

Processors appear happy to continue to operate at reduced capacity and shorter working days to manage supplies and this is affecting farmers where cattle are fit for slaughter.

It’s particularly troublesome for suckler farmers killing under-16-month bulls. Peak young bull numbers are expected in the coming weeks.

Farmers are in a situation where factories know that age is beating them, so farmers have no bargaining power on price and instead the bargaining is when they can be killed.

Some of these suckler bull producers will only sell animals over the next four to six weeks and it’s hugely frustrating to put everything into these bulls, including over 1.5t meal, only to be left in a situation where you are asking an agent when they can be killed.

Bullocks are working off a base price of €5.10/kg to €5.15/kg, with factories more confident about buying bullocks at €5.10/kg next week.

Heifers are being quoted at €5.15/kg in some factories, while others are paying €5.20/kg, but, again, the current indications are that most will be back to €5.15/kg for next week

Sluggish retail markets

Industry sources have suggested that retail markets for beef are sluggish and demand hasn’t been near where it has been in other years.

The most recent supermarket figures from the UK for the 12-week period up to 16 April 2023 show volume of sales back 1.7%, while spend is up almost 11%.

The current good weather conditions are expected to increase demand, with traditional barbecuing season kicking into action over the last two weeks.

Bulls haven’t escaped the cuts, with U grading bulls back at €5.30/kg and R grading bulls being quoted at €5.10/kg in some instances, but €5.20/kg is achievable to the hard seller.

Under-16-month bull quotes also took a hit. They are being quoted from €5.10/kg to €5.15/kg on the grid.

Cows

Cows have also taken a hit to quotes, with prices down 5c to 10c/kg across the board, based on quotes over the last two weeks.

U grading cows are trading anywhere from €4.80/kg to €4.90/kg, with plants most active for top-quality cows continuing to show a keen appetite for the right stock.

R grading cows are trading from €4.70/kg to €4.80/kg. O grading cows are at €4.50/kg to €4.60/kg, with P grading cows coming in at €4.30/kg to €4.40/kg.

Kill numbers

Last week’s kill came in at just under 32,000 head, which was an increase of about 300 head on the previous week.

The young bull kill went up 500 head, while both the bullock and heifer kill fell. The cow kill remains steady at 9,000 head/week for the last two weeks.

Factory agents are reporting that the last of the shed cattle are coming for sale in the next two weeks and with a later spring than normal in many parts, grass-finished cattle won’t start to appear until the end of June at the earliest.

This could mean factories will have to increase prices to get supplies. However, they will likely rely on their own feedlot supplies for this.

NI comment

Beef processors have cut quotes by 4p/kg in Northern Ireland this week, putting U-3 grading animals on 476p/kg (€5.77/kg inc VAT).

While processors are trying to exert pressure on the trade, price deals continue to hover around 498p to 500p/kg (€6.03 to €6.06/kg) for regular finishers supplying in-spec cattle.

Young bulls are under pressure with 490p/kg (€5.93/kg) on offer, while cows continue to trade around 415p/kg (€5.03/kg) for R animals.