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The 2018 beef kill is running largely in line with last year's levels, with throughput running 1,553 head behind 2017.
This figure, however, fails to highlight significant differences between the two years, with the 2018 kill running ahead of 2017 levels in seven out of the 10 weeks of processing to date.
Processing in 2018 got off to a flying start, with slightly over 5,000 extra cattle processed over the first four-week period. The kill gained further ground on 2017 levels in the following weeks but the higher throughput levels were quickly brought back into line, with heavy snowfall three weeks ago reducing the weekly kill by over 10,000 head compared with the corresponding week in 2017.
The carryover of animals into the following week put the kill back on track, with 2,968 extra cattle processed, but it was still not significant enough to bring throughput back above 2017 levels.
The table details throughput for different categories of stock and the difference between 2018 and 2017. As can be seen, young bull throughput has recorded significant growth, with specialist finishers increasing activity. The number of calves processed to date is also up significantly, with 4,204 head handled so far this year, an increase of 793 head on 2017 levels.
Steady trade
The trade is slower to resume this week due to the public holiday. There is still no upward movement on price with a day’s less killing taking the pressure off factories to source cattle. The majority of steers are selling on a mixed base of €3.95/kg to €4.00/kg, while heifers are trading at a base of €4.05/kg to €4.10/kg. Flat-price deals for Friesian steers remain in the range of €3.75/kg to €3.80/kg, with the higher prices for large sale groups of upwards of 25 to 30 cattle.
Bull prices are also steady. The general trade for R grading bulls is €3.90/kg to €3.95/kg, with U grades selling from €4.00/kg to €4.10/kg. It is mainly specialist finishers with greater negotiating power that are securing a price of €4.10/kg, with factories slow to pass €4.05/kg.
Cows remain a really solid trade, with agents active in mart sales, where numbers are remaining relatively small. P+3 grading cows are trading on average from €3.25/kg to €3.35/kg, but up to 10c/kg higher has been paid for cows traded in big numbers. Likewise, O grading cows are trading anywhere from €3.40/kg to €3.55/kg, with R grades from €3.50/kg to €3.60/kg. Flat-price deals for heavy R and U grade cows are rising to between €3.65/kg and €3.70/kg in cow specialist plants, with the best demand for young cows.
Northern trade
There has been some upward movement in northern prices on the back of tighter supplies. Prices have increased by an average of 2p/kg, with steer and heifer U-3 base quotes pushing up to £3.52/kg to £3.58/kg. At Monday afternoon’s exchange rate of 87.7p to the euro, this equates to €4.01/kg to €4.08/kg or €4.22/kg to €4.30/kg including VAT at 5.4%. Regular sellers realise they are gaining more selling power and are pushing to secure a base of £3.60/kg (€4.33/kg).
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