Factories continue to apply pressure to winter finishing farmers, with no move on quotes again this week.

Irish Farmers Journal analysis in autumn 2022 saw winter finishers needing a beef price of €6/kg in spring 2023.

The average price of an R+3+ bullock on last week’s official Department of Agriculture prices came in at €5.55kg including all bonuses.

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That means a bullock killing out at 380kg carcase is losing €171/head. A shed of 50 of them would lose close to €10,000, yet factories continue to play the poor mouth this week when it comes to pricing cattle.

Bullocks continue to work off €5.20/kg to €5.25/kg, with Foyle Meats in Donegal still top of the pile with its quote of €5.35/kg for bullocks killing out at 300kg to 400kg.

Heifers are working off €5.30/kg in the main, with a base price of €5.35/kg being paid where higher numbers are involved and for regular customers.

Donegal is also out in front with its base price quote of €5.40/kg for heifers killing out at 300kg to 400kg.

Bonuses of up to 30c/kg are also being paid for in-spec Aberdeen Angus bullocks and heifers. Irish Hereford Prime is also paying a higher bonus of 25c/kg for the next four weeks.

Young bulls

The young bull trade remains firm, with factories specialising in bulls still anxious for stock.

U grading bulls range from €5.40/kg to €5.50/kg, with R grades 10c/kg back.

P and O grades are moving in the main from €5.00/kg to €5.10/kg and €5.10/kg to €5.20/kg respectively.

Cow trade steady

The cow trade remains very strong, with a lot of heavy cows still being sold through marts where agents remain active.

U grading cows are trading in a wide differential, ranging anywhere from €5.00/kg to €5.20/kg, with plants most active for top-quality cows continuing to show a keen appetite.

R grading cows are trading from €4.90/kg to €5.00/kg, with young cows a super trade in the live ring.

P3 cows are working off €4.60/kg, with O grading cows coming in at €4.70/kg to €4.80/kg.

Last week’s kill came in at 30,131 head, excluding 1,971 calves that were slaughtered. It’s a similar number to the previous week, which was also a short week.

Last week’s kill is in stark contrast to the same week last year, when 37,554 head of cattle were processed.

The young bull kill saw the biggest drop last week, with just over 1,400 young bulls processed.

While some predicted the Chinese ban on Brazilian beef as an opportunity for Irish suppliers to gain inroads in the Chinese market, it appears that Brazil also concentrated some of its efforts on the European market.

Brazil has increased its chilled and frozen beef exports to Europe by 35% in the first quarter of 2023.

In the first quarter of the year, 15,310t were shipped, 35% more than in the same period of 2022.

The increase occurred both in the case of the frozen product (+38% to 11,725t) and chilled product (25% to 3,585t).

The Netherlands, Spain, Italy and Germany are the top four in Europe for Brazilian beef imports in 2023.

NI comment

Cattle quotes at Northern plants are holding firm this week, with factories sticking on a 478p/kg (€5.72/kg inc VAT) quote.

However, deals on prime cattle are running well above this level, with in-spec steers and heifers on 492p to 496p/kg (€5.89 to €5.94/kg).

There have been reports from bigger finishers of prices pushing above 500p/kg (€5.99/kg).

Quotes on cull cows are stuck on 390p/kg (€4.67/kg), but deals are running from 410p/kg to 415p/kg (€4.91 to €4.97/kg).