Buying activity is much stronger than the norm for the shorter processing week between Christmas and the new year.
Factories are very keen to maximise throughput, with one agent’s comment that he was told to bring on whatever cattle he could lay his hands on this week a good reflection of the higher demand present.
Base prices have increased by 5c/kg on average, with prices starting from €3.75/kg for steers and €3.85/kg for heifers.
Sellers with greater negotiating power or traditionally supplying cattle for the shorter processing week are, in many cases, securing 5c/kg higher.
There is also much more flexibility on what would normally be deemed out-of-spec stock, with greater leniency on stock over 30 and even 36 months of age, reduced or no cuts implemented on cattle killing at fat score 2-/2= and greater scope to achieve higher carcase weight limits.
The position is in contrast with previous years, where this week’s kill would normally be used to keep supplies topped up.
Strong sales in recent months, as detailed in Phelim O’Neill’s market update (see left), has cleared out stocks and left reserves in low supply.
This is putting more pressure on plants to fill orders at a time when sellers are less anxious to move cattle.
Plants also have one eye on a shorter four-day kill next week and are encouraging agents to stay sourcing stock in the coming days, a fact sellers should take note of in negotiations.
This is also in contrast with previous years where the attention would lean more towards cows and bulls over steers and heifers, with a focus on manufacturing beef.
Cows lift 5c/kg
More bite in the trade is also being reflected across cows and bulls.
Cow prices have strengthened on average by 5c/kg, with the most movement in plants specialising in the cow trade.
As such, a large differential remains, with P+3 grades selling from €2.90/kg to €3.05/kg, O grading Friesians from €3.00/kg to €3.15/kg, with good-quality R grades in better demand and selling to €3.25/kg to €3.30/kg at the higher end of the market. U grades are selling in general to €3.35/kg to €3.40/kg.
Plants are using specialised bull finishers where possible to supplement throughput.
Prices for and R and U grades are typically €3.75/kg and €3.85/kg, with those handling higher numbers securing at least 5c/kg extra, excluding producer bonuses for those supplying through groups.
Bulls less than 16 months and trading on the grid are selling from a base of €3.75/kg to €3.80/kg, with most plants continuing to prefer a carcase weight of less than 400kg and an upper limit of 420kg to 430kg. Allowances are being made where the majority of a sale group fits within this range.
Northern trade
The supply and demand balance is also favouring northern suppliers.
A few producers have reported that reduced imports of southern cattle for further feeding or for direct slaughter is now starting to tell in reducing supplies available.
Base quotes remain at £3.44/kg to £3.48/kg, or the equivalent of €4.26/kg to €4.31/kg including VAT at an exchange rate of 85p to the euro.
However, there are very few cattle moving at this level, with regular sellers securing into the mid £3.50s and those tied into supply arrangements 5p/kg to 10p/kg higher.
Cow prices are unchanged at £2.45/kg to £2.60/kg for Os, with Rs to £2.70/kg.
Increased VAT rate
The VAT flat rate addition of 5.2% is increasing to 5.4% from 1 January. The increase was announced in the budget, with the flat rate addition aimed at compensating farmers who are not registered for VAT and thereby cannot recover VAT costs.
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
Buying activity is much stronger than the norm for the shorter processing week between Christmas and the new year.
Factories are very keen to maximise throughput, with one agent’s comment that he was told to bring on whatever cattle he could lay his hands on this week a good reflection of the higher demand present.
Base prices have increased by 5c/kg on average, with prices starting from €3.75/kg for steers and €3.85/kg for heifers.
Sellers with greater negotiating power or traditionally supplying cattle for the shorter processing week are, in many cases, securing 5c/kg higher.
There is also much more flexibility on what would normally be deemed out-of-spec stock, with greater leniency on stock over 30 and even 36 months of age, reduced or no cuts implemented on cattle killing at fat score 2-/2= and greater scope to achieve higher carcase weight limits.
The position is in contrast with previous years, where this week’s kill would normally be used to keep supplies topped up.
Strong sales in recent months, as detailed in Phelim O’Neill’s market update (see left), has cleared out stocks and left reserves in low supply.
This is putting more pressure on plants to fill orders at a time when sellers are less anxious to move cattle.
Plants also have one eye on a shorter four-day kill next week and are encouraging agents to stay sourcing stock in the coming days, a fact sellers should take note of in negotiations.
This is also in contrast with previous years where the attention would lean more towards cows and bulls over steers and heifers, with a focus on manufacturing beef.
Cows lift 5c/kg
More bite in the trade is also being reflected across cows and bulls.
Cow prices have strengthened on average by 5c/kg, with the most movement in plants specialising in the cow trade.
As such, a large differential remains, with P+3 grades selling from €2.90/kg to €3.05/kg, O grading Friesians from €3.00/kg to €3.15/kg, with good-quality R grades in better demand and selling to €3.25/kg to €3.30/kg at the higher end of the market. U grades are selling in general to €3.35/kg to €3.40/kg.
Plants are using specialised bull finishers where possible to supplement throughput.
Prices for and R and U grades are typically €3.75/kg and €3.85/kg, with those handling higher numbers securing at least 5c/kg extra, excluding producer bonuses for those supplying through groups.
Bulls less than 16 months and trading on the grid are selling from a base of €3.75/kg to €3.80/kg, with most plants continuing to prefer a carcase weight of less than 400kg and an upper limit of 420kg to 430kg. Allowances are being made where the majority of a sale group fits within this range.
Northern trade
The supply and demand balance is also favouring northern suppliers.
A few producers have reported that reduced imports of southern cattle for further feeding or for direct slaughter is now starting to tell in reducing supplies available.
Base quotes remain at £3.44/kg to £3.48/kg, or the equivalent of €4.26/kg to €4.31/kg including VAT at an exchange rate of 85p to the euro.
However, there are very few cattle moving at this level, with regular sellers securing into the mid £3.50s and those tied into supply arrangements 5p/kg to 10p/kg higher.
Cow prices are unchanged at £2.45/kg to £2.60/kg for Os, with Rs to £2.70/kg.
Increased VAT rate
The VAT flat rate addition of 5.2% is increasing to 5.4% from 1 January. The increase was announced in the budget, with the flat rate addition aimed at compensating farmers who are not registered for VAT and thereby cannot recover VAT costs.
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
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