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The beef trade has steadied and strengthened slightly in recent days. A continued recovery in grass growth has taken some pressure off beef producers to move stock and this is reflected in last week’s kill falling 1,400 head to 34,264.
While there are still some plants purchasing cattle at a base of €3.85/kg for steers and €3.95/kg for heifers, a growing percentage are moving at a base of €3.90/kg and €4.00/kg respectively.
Supplies are tightest in the midlands, west and north-west, with independent plants with access to a tighter supply pool becoming more active in sourcing cattle.
The best demand also remains for cattle deemed in-spec by plants, with good continental cattle under 30 months of age and Angus steers and heifers achieving a carcase weight of 270kg upwards generating more competition.
The young bull kill has gradually declined in recent weeks and last week reduced by 167 head to 3,271.
Bulls less than 16 months and trading on the grid are selling in small numbers on a base of €3.85/kg to €3.90/kg, but 5c/kg higher has been paid to specialist finishers.
A similar situation is evident for bulls aged over 16 months, but under 24 months.
R and U grading bulls are being quoted a price of €3.85/kg to €3.90/kg and €3.95/kg to €4.00/kg respectively, but 5c/kg to 10c/kg higher has been secured by specialist finishers supplying plants with high numbers on a regular basis. The backlog, which was present in recent weeks, in getting bulls accepted for slaughter has now also passed, with agents keen to move bulls quickly.
Reduced pressure to move cows has slowed throughput, although some agents are starting to handle cows which are scanned empty.
The general quote for P+3 grading cows remains at €3.00/kg to €3.05/kg, but prices vary 5c/kg to 10c/kg either side of this range. Plain-quality cows lacking flesh are selling back to €2/kg, while light-carcase P-1- cows are selling back to as low as €1.30/kg to €1.50/kg. Therefore, it is important that sellers investigate potential prices if in doubt before moving cows.
The fact that specialist finishers have moved a lot of cows has also lifted demand for good-quality fleshed cows.
Last week’s average price for O grading cows ranged from €3.10/kg to €3.20/kg, while individual plants paid as high as €3.30/kg to secure deals for good-quality cows.
Likewise, R grading cows ranged on average from €3.35/kg to €3.45/kg, but plants specialising in the cow market have paid up to 5c/kg to 10c/kg higher, while U grades range from €3.45/kg to €3.60/kg and a top price of €3.65/kg.
NI and British trade
Cattle supplies in the North have also tightened, with low numbers of grass-finished cattle appearing and shed-finished supplies tightening.
The trade has steadied, with base U-3 quotes for steers and heifers ranging from £3.50/kg to £3.52/kg. With sterling weakening to 90p to the euro, this is the equivalent of €3.89/kg to €3.91/kg or €4.10/kg to €4.12/kg including VAT at 5.4%. Regular sellers are securing 4p/kg to 6p/kg higher.
This is in contrast with Britain, where continued drought conditions are putting pressure on producers in some parts of the country to move stock. The AHDB reports R4L prices reducing 3p/kg to 4p/kg, with heifers averaging £3.68/kg (€4.31/kg) and steers £3.71/kg (€4.34/kg). There is a swing in prices of close to 20p/kg between prices paid in the south of England where drought pressure is greatest and those paid in Scotland.
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