Yesterday’s announcement by Bord Bia regarding beef exports increasing in volume to 470,000t and 10% in value to just under €2.1bn will do little to ease farmers’ current frustrations.

This is especially the case when you consider volumes exported to Britain are estimated to have increased 5% to 250,000t, with the value of exports increasing €90m to €1.1bn, yet the price differential in recent months has increased to €300 per head on equivalent animals.

Many sellers are finding it even harder to get cattle moved now than before the Christmas break, with delays persisting in many plants. The greatest difficulties exist for bulls but this is also having a knock-on effect on other classes.

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Steers are selling at a base of €4.00/kg while quotes for heifers have eased slightly with most now moving at a base of €4.10/kg. A small number of sellers are securing a base of €4.15/kg for large offerings or are using heifers to negotiate a better price for bulls or to get higher numbers accepted.

Cattle purchased on contract for the Christmas period are also said to be interfering with normal throughput. ABP plants, in particular, are reported to be handling large numbers with prices for in-spec steers purchased on contract reported as high as €4.15 to €4.20/kg.

Negotiating deals for out-of-spec heifers and steers has also become more difficult. Overage and non-QA steers are not being quoted for by some plants. Others are offering a base of €3.80 to €3.90/kg with underage, non-quality assured stock faced with similar lower base quotes. O grade steers are selling flat for €3.80/kg with quotes falling to €3.70/kg for overage Friesian steers. Underage O grade, or butcher type, heifers are selling flat for €4/kg with Hereford and Angus types attracting a 10c/kg premium.

Bull concerns

Finishers trying to trade slaughter-fit bulls are becoming increasingly worried.

Friesian bulls are facing the toughest trade but continental bulls over 16 months old are also coming under more pressure. A number of ABP plants are not active for bulls over 16 months old, while significant difficulties have also been reported by specialised finishers in Donegal in getting bulls accepted by Foyle Donegal.

Other factories are accepting bulls from their own customers but have little interest in purchasing or in many cases even quoting new customers. Some plants are deterring sales by quoting as low as €3.80/kg for U grade bulls.

At the higher end of the market, R and U grade bulls are selling for €3.90/kg and €4.00/kg respectively with specialised finishers in groups securing higher priced deals.

Farmers with bulls under 16 months of age are also becoming dismayed with factory prices. Despite being advised to progress down this route with the offer of selling bulls on the grid, some plants are offering a 10c/kg lower base price than steers while others will only buy bulls flat at €3.90/kg for R grades and €4.00/kg for U grades.

O=/+, 2+/= grade Friesian bulls are selling from €3.50/kg to €3.60/kg for bulls less than 20 months old. Some plants are dropping quotes for bulls aged 20 to 24 months old to €3.40/kg. Heavy penalties are being imposed for under-fleshed bulls with cuts of 20c to 50c/kg for bulls falling to fat class 1.

Slight cow improvement

Prices remain static but demand for cows has improved in some plants with stronger post-Christmas demand for manufacturing beef. Fleshed O grade cows are selling from €3.00 to €3.15/kg with P+3 grade cows selling back to €2.85/kg. Under-fleshed and light carcase cows are being penalised 20-30c/kg for O grade cows and up to 50c/kg for P grades. R grade cows are selling in general from €3.20/kg to €3.30/kg with plants specialising in cows paying up to €3.40/kg. U grade cows are selling from €3.50 to €3.60/kg.