Livestock farmers dealing with higher drought-related production costs are now also having to contend with significantly lower returns for their produce.

The steer base price has reduced to €3.90/kg to €3.95/kg, with heifers 10c/kg higher. Cow prices have fallen by 30c/kg to 40c/kg in the space of a few weeks, with last week’s cow kill recorded at 9,282.

Speaking at an IFA national livestock committee meeting in Dublin on Wednesday, IFA livestock chair Angus Woods said factories have to stop cutting cattle prices and stabilise the market.

Stop cutting prices and stop undermining confidence in the market place

The IFA has been in contact with the Minister for Agriculture Michael Creed and the key factory players on the price issue. “Our message is clear. Stop cutting prices and stop undermining confidence in the market place.”

Mart entries remain low but some managers report a slight increase in demand for good-quality cattle in recent days.

However, poorer quality and dairy-bred cattle with poor weight-for-age remain a difficult trade, with Friesians selling from €1.40/kg to €1.60/kg while Angus are averaging €1.70/kg to €1.90/kg with the best quality lots and Hereford crosses selling to €2/kg and slightly higher.

Meanwhile, lamb quotes for Thursday range from a base of €4.90/kg to €5/kg, with 60c/kg or €12 per head removed off the value of a 20kg carcase in a little over a 10 days.

“We met with all the main factories in the last week and they all agreed that prices need to stabilise at this stage so now is the time to act on this commitment,” IFA national sheep chair Sean Dennehy said.

Similar to beef, throughput is being hindered by an increase in out-of-spec stock. “Some plants are reporting up to 30% under finished lambs.These are causing unnecessary problems on the market in terms of both numbers and price and if these lambs were not presented the price would be better.”

A contributor to higher numbers of lighter lambs being presented for slaughter is the absence in demand for store lambs. This time last year buyers were actively purchasing and this helped to keep a good floor under the trade.

The store trade has yet to take off, with producers delaying sales in the hope of rainfall and higher demand.