The rate at which factories disrupted by beef protests have resumed processing since Monday varies greatly.

A number of factories resumed processing at a reduced capacity on Monday, others started slaughtering cattle on Tuesday, while a small number only returned to processing on Wednesday.

Throughput is still running well below normal, with producers who did not have cattle previously booked in facing a backlog of one to two weeks to get stock moved.

Last week’s kill was recorded at just 10,012 head, meaning there was 95,573 head fewer cattle processed in the last eight weeks compared with the corresponding period in 2018.

However, it is unlikely there are as many as this on the ground, with numbers predicted to fall at the end of the year.

Factories are focusing on steer and heifer throughput, with factory appetite for bulls reported as sluggish. Reports also suggest agents are working with regular suppliers and prioritising cattle that are at risk of exceeding 30 months of age.

Prices are largely unchanged from the levels prior to when protests began. A high percentage of steers are trading on a base of €3.50/kg, with some plants that were unaffected by the protests continuing to purchase at a base of €3.45/kg.

A high percentage of heifers are trading within a price range of €3.50/kg to €3.55/kg, with Liffey Meats topping prices at a base of €3.60/kg following a reported agreement with protesters to keep base prices unchanged until early November.

The plant has not commented on the reported agreement, but is paying the prices listed thus far.

Reports also indicate that factories are being selective in the type of cattle they wish to handle this week, with less interest in bulls and heavy cattle.

Bull quotes remain at €3.50/kg to €3.55/kg for U grading bulls, €3.40/kg to €3.45/kg for R grades and €3.15/kg to €3.25/kg for O grades, with the latter price dependent on quality, including weight and fat cover.

Bulls were not included in the beef sector agreement, meaning bulls less than 16 months and purchased on the grid are not receiving the higher in-spec bonus of 20c/kg.

Quotes are hard to come by given the low activity, but reports point to a base of €3.40/kg at the bottom of the market to €3.45/kg.

Cow prices remain steady in most plants, but some have moved to ease prices back in anticipation of higher numbers starting to move from dairy farms.

This is creating a wider differential, with quotes for P+3 grading cows ranging anywhere from €2.70/kg to €2.85/kg, with O grades selling from €2.85/kg to €3.00/kg.

Meanwhile, R grades are being quoted anywhere from €3.00/kg to €3.20/kg at the higher end of the market for fleshed cows.

The new bonus mechanism negotiated as part of the agreement came into play on Monday. The table below explains how the in-spec bonus has increased from 12c/kg to 20c/kg, the new 12c/kg bonus for in-spec animals grading O- on conformation and 4+ on fat cover, along with the new 8c/kg bonus which will be paid on steers and heifers aged 30 to 36 months and which fall within the original grid conformation and fat class parameters.

It should be noted that while the residency period on the final farm has reduced from 70 to 60 days, the 70-day quality assurance rule still stands, meaning cattle must have spent at least 10 days more on the farm or, where purchased, have spent at least 10 days previously on a quality assured farm.

Read more

NI trends: cattle quotes holding at 320p/kg; lamb prices down