It’s been another very positive week for the beef trade, with quotes increasing again on the back of low supplies and insatiable supermarket demand. Prime cattle supplies are in very short supply on farms and factory agents are scrambling for supplies to fill supermarket contracts.
It’s been another very positive week for the beef trade, with quotes increasing again on the back of low supplies and insatiable supermarket demand.
Prime cattle supplies are in very short supply on farms and factory agents are scrambling for supplies to fill supermarket contracts.
Base prices for bullocks have kicked on to €5.30/kg this week, with €5.35/kg base price for bullocks being paid on a number of occasions.
Heifers have also cranked up another notch, with a €5.35/kg base price now at the lower end of quotes for heifers.
A number of finishers have been able to secure a €5.40/kg base price this week for in-spec heifers.
Aberdeen Angus heifers being slaughtered through various factory groups are now at €6/kg. Aberdeen Angus bonuses of up to 30c/kg continue to be paid for in-spec cattle.
Current indications are that the price rises will continue, with supply and demand being the main driver of further increases.
Farmers have the ball at their foot in terms of beef price, with factories willing to bend over back wards to get cattle.
This includes free haulage, no weight limits and added bonuses above base prices. Sell hard and price around is my advice, especially if you have good numbers coming available for finish.
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 €4.90/kg to €4.95/kg, while O grading dairy cows are being bought at €4.85/kg to €4.90/kg, depending on which factory you are dealing with.
R grading cows are being quoted at €5.10/kg to €5.20/kg and higher money is available where numbers are involved.
P+3 cows are working off €4.65/kg to €4.70/kg, depending on weight, age and flesh cover.
Well-fleshed U grading cows continue to command top prices of €5.30/kg to €5.40/kg and over it for young fleshed heavy cows.
Bulls
Under-24-month bulls are still working off a €5.50/kg to €5.60/kg base price for U grading bulls.
R grading bulls are coming in at €5.40/kg to €5.50/kg, while O grading bulls are being bought at €5.30/kg to €5.35/kg. P grading bulls are working off €5.10/kg to €5.20/kg, depending on weight and flesh cover. Under-16-month bulls are generally working off €5.25/kg to €5.35/kg.
Across the water in Britain, prices continue to improve with the average price for R4L heifers rising by 3.4p to 530p/kg (€6.74/kg including VAT).
The average price of R4L heifers was also up by 2.9p to 528p/kg (€6.72/kg incl VAT).
Across Europe, it’s a similar story with the average young bull price increasing by 30c/kg since the beginning of September, while Irish prices have only increased by 16c/kg during the same period.
Moving further afield, beef prices across the world are on the up, with almost all markets finely balanced between supply and demand. The Mercusor steer index has risen 91c/kg since July, with indications of more rises coming.
IFA livestock chair Declan Hanrahan said: “Factories are paying a lot more than they are quoting farmers for cattle and the advice is to bargain hard on quotes this week. Our main markets for Irish beef continue to improve and factories must reflect this in their quotes.”
NI comment
A 4p/kg increase to quotes at NI plants brings base price to 494p/kg (€6.24/kg inc VAT) for U-3 steers and heifers, but deals are running 10p/kg above. Farmers with a good supply of in-spec steers and heifers are on 505p (€6.37/kg), rising to 510p/kg (€6.44/kg) for regular finishers. Young bulls are moving around 500p/kg (€6.31/kg) with good quality suckler cows on 400p/kg (€5.05/kg).
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