Beef Trends: factories turn the screw

Factories have moved to turn the screw on the beef trade, dropping quotes by 5c/kg this week across all categories of stock.

Bullocks are being quoted at €5.10/kg this week, with heifers working off a €5.15/kg base price.

There were bullocks bought at €5.20/kg this week based on deals completed last week and there were also heifers bought at €5.25/kg this week.

Flat deals for Aberdeen Angus cattle continue to work off €5.50/kg to €5.60/kg, with demand good for traditional-bred stock.

While agents are playing the poor mouth game this week, they are still anxious for finished cattle and are on orders not to let any cattle slip out of the net in the coming weeks.

Cows

Cows have also seen a slight dip in price this week, with U grading cows still up at €5.10/kg and R grading cows coming in at €4.60/kg to €4.70/kg.

O+ suckler cows are generally working off €4.40/kg to €4.60/kg, while O grading dairy cows are being bought at €4.50/kg in the main.

P+3 cows are working off €4.20/kg to €4.40/kg depending on weight, age and flesh.

Bulls

Under-24-month bulls are working off a €5.40/kg to €5.45/kg base price for U grading bulls.

R grading bulls are coming in at €5.20/kg to €5.35/kg, while O grading bulls are being bought at €5.00/kg to €5.10/kg.

P grading bulls are working off €5.00/kg, depending on weight and flesh cover. Under-16-month bulls are generally working off a €5.20/kg base price.

Weekly kill

Last week’s kill came in at 31,819 head, up 1,000 on the previous week’s kill.

Interestingly, despite factories talking about bigger supplies, the kill is actually back 1,000 head on the same week’s kill in 2023.

The biggest lift came in the bullock category, with the bullock kill rising by just over 650 head on the week.

The cow kill also rose by just over 350 head, but this hasn’t any material effect on beef volumes, as the majority of cows being killed at the moment are P grading dairy cows, many of which are being sold direct from parlours.

There has been 855,040 cattle killed so far in 2024 compared with 835,041 during the same period in 2023.

That’s up 20,000 head, while Bord Bia predicted earlier in the year that the Irish cattle kill would fall by 30,000 to 40,000 head in 2024.

If these numbers are correct, we could see a very tight autumn for cattle supplies.

Across the water, the beef trade remains very steady. R4L bullocks continue to trade at 478p/kg (€5.80/kg incl VAT). That’s 50c/kg or €200/head on a 400kg carcase ahead of the Irish price.

The exchange rate movement in the last few weeks to 84p/€1 is also helping Irish exporters in the UK.

IFA livestock chair Declan Hanrahan said: “Attempts by factories to undermine beef prices this week are unnecessary and must stop.

“The demand for beef is expected to pick up over the summer months in our key markets against a backdrop of tighter supplies of cattle.

“UK production is predicted to tighten considerably as we move through the year, with prices remaining strong.”

NI comment

There is a more positive outlook to the beef trade in Northern Ireland this week, as supplies of finished cattle coming out of sheds are drying up.

With numbers tightening, agents are more flexible on price and hungry for stock.

Although quotes remain on 462p/kg (€5.73/kg inc VAT), 480p/kg (€5.95/kg) is the realistic opening price, with deals running 2p to 4p/kg above this for steers and heifers. Cows are a flying trade, with young, continental types making 400p/kg (€4.96/kg).