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The first beef kill of 2019 has replicated the trend of high throughput which dominated the trade for the final months of 2018. Throughput was recorded at 27,822 head, which is relatively high given many plants operated a three-day kill.
Factory agents report numbers continuing strong this week, but there are signs of steer and heifer supplies starting to tighten.
Price remains unchanged, with steers trading on a base of €3.75/kg, while heifers are trading 10c/kg higher at a base of €3.85/kg.
There are very few prices reported outside this range, but it is clear that some factories are becoming more anxious to source heifers in particular.
A higher number of young bulls and cows in the market is, at present, providing a safety valve for factories to continue to maximise throughput if required. This is reflected in last week’s young bull kill making up a higher percentage of the overall kill, with 5,075 head processed.
The trade for bulls remains very variable between plants, with some factories upping their interest, while others continue to operate a much more selective approach to processing.
General prices for R grading bulls range from €3.70/kg to €3.75/kg, with U grades 10c/kg higher. Carcase weight limits also differ greatly, with some plants trying to operate an upper weight limit and implement penalties of 5c/kg to 10c/kg for bulls they deem overweight. In some plants, this is kicking in at 420kg, while other plants are accepting bulls up to 450kg carcase weight or higher.
This is also influenced by the number of bulls in the batch deemed to be overweight and the producer-processor relationship. Friesian bulls are trading on average from €3.50/kg to €3.55/kg, with top prices of €3.60/kg. Bulls less than 16 months and trading on the grid are selling on a base of €3.75/kg.
Cow prices are steady at a low level. P+3 grading cows continue to trade from €2.65/kg to €2.80/kg, with a high percentage of O grades from €2.80/kg to €2.90/kg and a small cohort rising to €3.00/kg. Likewise, R grades are trading on average from €3.00/kg to €3.10/kg, with top prices of €3.15/kg to €3.20/kg paid, while top U grade prices averaged €3.30/kg last week.
Northern trade
The trade in Northern Ireland remains steady, with factories also increasing purchasing activity for heifers. The general U-3 base quote being negotiated by farmers is £3.44/kg to £3.46/kg or the equivalent of €3.82/kg to €3.84/kg at 90p to the euro and €4.03/kg to €4.05/kg including VAT at 5.4%.
Sellers negotiating at the top of the market are securing top prices rising to £3.50/kg (€4.10/kg incl VAT). Cow prices remain unchanged, with O grades averaging £2.30/kg to £2.35/kg (€2.69/kg to €2.75/kg), while R grades are averaging £2.40/kg to £2.50/kg (€2.81/kg to €2.83/kg incl VAT).
The British trade is finding it hard to shake off downward pressure after a short reprieve, with prices strengthening slightly in the last week of 2018. The AHDB’s latest price report shows average steer prices falling 2.9p/kg, with R4L steers now trading at £3.65/kg (€4.27/kg), while heifer prices eased 1p/kg to an average R4L price of £3.62/kg (€4.24/kg).
This leaves average deadweight cattle prices running 10p/kg behind the comparable period in 2018 and 5p/kg behind the five-year average.
Average bull prices slipped 3p/kg, with R grades selling for £3.43/kg (€4.02/kg), while cow prices range from £2.25/kg to £2.44/kg (€2.64/kg to €2.86/kg) for O-/O+ grading cows.
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