There are strong indications that the balance of power in the beef trade is shifting from factories to sellers. Factory agents report more difficulty in sourcing supplies as the week progresses, with regular sellers and specialised finishers starting to secure higher quotes.
IFA National Livestock chair Henry Burns said that “the view in the beef trade is that cattle prices have bottomed out and are turning the corner. The factory tactic of cutting prices every week to force farmers out with stock has run out of road”.
Burns added that “factories have increased their base price for steers to €3.95/kg and €4.05/kg for heifers, just to hold on to stock. Farmers selling cattle should insist on 5c/kg to 10c/kg over the factory quotes and dig in hard to get prices back up”.
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The tightness in supplies is demonstrated in the latest AIM data, which shows a reduction of over 70,000 in supplies of cattle aged 24 to 36 months of age.
“This will leave factories short of stock as we enter the highest demand period of the year for beef.
“In addition, Bord Bia shows prices in the UK increasing to the equivalent of €5.11/kg for an R3 steer on the back of tight supplies,” concluded Burns.
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There are strong indications that the balance of power in the beef trade is shifting from factories to sellers. Factory agents report more difficulty in sourcing supplies as the week progresses, with regular sellers and specialised finishers starting to secure higher quotes.
IFA National Livestock chair Henry Burns said that “the view in the beef trade is that cattle prices have bottomed out and are turning the corner. The factory tactic of cutting prices every week to force farmers out with stock has run out of road”.
Burns added that “factories have increased their base price for steers to €3.95/kg and €4.05/kg for heifers, just to hold on to stock. Farmers selling cattle should insist on 5c/kg to 10c/kg over the factory quotes and dig in hard to get prices back up”.
The tightness in supplies is demonstrated in the latest AIM data, which shows a reduction of over 70,000 in supplies of cattle aged 24 to 36 months of age.
“This will leave factories short of stock as we enter the highest demand period of the year for beef.
“In addition, Bord Bia shows prices in the UK increasing to the equivalent of €5.11/kg for an R3 steer on the back of tight supplies,” concluded Burns.
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