Beef Trends: quotes creep up again

Beef quotes continue to creep up, with another 5c/kg added to quotes this week.

Demand is outstripping supply in all factories, with agents very active for finished cattle.

Quoted and paid prices are two different things, with quotes now just the starting point to doing deals to sell.

All agents have been given leeway to increase the price being paid for cattle to get deals across the line.

Bullocks are now being bought at €5.20/kg to €5.25/kg, with a few reports of €5.30/kg being paid to secure bigger loads of bullocks this week.

Heifers are moving at €5.30/kg in the main this week, again with a few reports of as high as €5.40/kg base price being paid for a big load of continental heifers from a regular supplier.

All sorts of side deals are being done on carcase weight and haulage to get cattle across the line.

Farmers need to price around carefully and make sure they are getting what the market is delivering at the moment.

Breed bonuses of as high as 30c/kg continue to be available for Aberdeen Angus heifers, with flat prices of as high as €5.70/kg in some factories.

Cows

Well-fleshed cows are in big demand at the moment, with the manufacturing beef trade continuing on a very strong footing.

O+ suckler cows are generally working off €4.80/kg to €4.90/kg, while O grading dairy cows are being bought at €4.75/kg to €4.80/kg, depending on which factory you are dealing with.

R grading cows are being quoted at €4.90/kg to €5.00/kg and higher money is available where numbers are involved.

P+3 cows are working off €4.40/kg to €4.50/kg, depending on weight, age and flesh cover.

Farmers need to be careful on flesh cover, with some factories quoting €2.50/kg to €3/kg for P1 boner cows.

Well-fleshed U grading cows continue to command top prices of €5.10/kg to €5.25/kg and over it for young fleshed heavy cows.

Bulls

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

R grading bulls are coming in at €5.30/kg to €5.35/kg, while O grading bulls are being bought at €5.15/kg to €5.20/kg. P grading bulls are working off €5.00/kg to €5.05/kg, depending on weight and flesh cover. Under-16-month bulls are generally working off €5.15/kg to €5.25/kg.

IFA

IFA livestock chair Declan Hanrahan said: “Demand for beef in these markets are very firm in the lead-up to Christmas, creating strong demand for Irish beef.

“Factories are currently filling orders for these markets and with supplies of suitable in-spec cattle tight, prices must move on to reflect the full value of these markets to farmers.

“There is a 5c to 10c/kg difference between quoted and paid prices. The price factories are willing to pay is evident in marts where finished and store cattle are freely exceeding what they are offering in most cases.”

British prices

Across the water in Britain, beef prices continue to improve, with R4L bullocks coming in at 527p/kg (€6.70/kg incl VAT).

Last week’s kill fell sharply, with factories scrambling for supplies for Christmas contracts.

There continues to be a €1/kg-plus difference in the British beef price and Irish beef price.

Northern Ireland

Quotes for prime cattle are up 4p/kg at NI plants to 488p/kg (€6.16/kg incl VAT) for U-3 grading animals, although 500p/kg (€6.31/kg) is a realistic starting price with deals of 504p to 506p/kg (€6.31/kg) paid to regular finishers.

Cull cows are a steady trade, with good-quality suckler types holding on 390p to 400p/kg (€4.92 to €5.05/kg).