The negative price pressure introduced by factories in the last 10 days was stepped up over the weekend. Plants in the main processing groups in particular have moved to pull prices back a further 5c/kg, reducing base quotes for steers to €3.95/kg and €4.05/kg for heifers. Some of the independent plants have followed suit, while others are holding base quotes at €4.00/kg for steers and €4.10/kg for heifers.

The success of the move has been variable to date. There are significant numbers of cattle from deals completed today moving at the lower quotes. Meanwhile, some regular sellers and producers with large numbers on hand are managing to negotiate 5c/kg higher.

Bull trade

Negative price pressure for steers and heifers is also being reflected in the trade for bulls. However, with the lion’s share of throughput at this stage of the year coming via specialist producers, sellers are having more luck in negotiations.

R and U grade bulls are moving in the main for €4.00/kg and €4.10/kg respectively, with some specialist producers securing 5c/kg higher. Other sellers with small numbers on offer and lower negotiating power are, in some cases, facing an initial 5c/kg lower quote.

Sterling rate

Plants are blaming sterling remaining around 90p to the euro as reducing their competitiveness in the UK market. While Irish prices have come under pressure, Northern and British prices have held solid.

Northern U-3 steer and heifer base quotes range from £3.60/kg to £3.62/kg (€4.23/kg to €4.26/kg), with most regular sellers continuing to secure 2p/kg to 4p/kg higher. British R4L steer prices are averaging around £3.80/kg (€4.47/kg), with heifers 1p/kg to 2p/kg below steers. Prices remain strongest in Scotland with a price differential of up to 10p/kg. The AHDB is reporting prices easiest in the midlands.

French slowdown

Bord Bia’s latest market update shows a slowdown in the French trade and high supplies of cheaper German and Polish beef competing for market share of French imports. Polish R3 bulls are selling for €3.38/kg including VAT, while German R3 bulls are trading for €3.82/kg including VAT.

It reports Irish Angus beef products, such as beef ribs and skirts, continuing to achieve solid demand and holding their own in the market. French R3 young bull prices are reported at the equivalent of €3.95/kg including VAT.

Read more

‘Factories not delivering an attractive price will see more cattle exported’