The prices currently being paid in the marts for cull cows remain very strong and potentially well ahead of the returns on offer in local factories.
According to the Livestock and Meat Commission (LMC), a base price of 520-526p/kg has been available for O+3 grading cull cows during most of October.
To the week ending 25 October, the average price paid for O3 grading cows was 547.7p/kg, while R4 grades averaged 559.4p/kg.
However, in the live market, well-fleshed commercial suckler cows around 800kg are typically making around 360p/kg, which equates to prices of approximately £2,900/head.
If this cow were to be slaughtered in a NI factory, at the current prices on offer for R4 grades and taking a conservative kill out of 53%, it is a carcase weight of 424kg and a total price of £2,372/head.
A producer would receive £528 less slaughtering directly compared to selling in the livestock market.
Dairy cull
Analysis of prices being paid for cull dairy cows would suggest there isn’t the same big advantage from selling in the mart. Looking at recent mart price trends, a P3-type cow weighing 720kg is typically making around 254p/kg or £1,828/head.
Assuming this animal will kill out around 48%, it is a 346kg carcase, which, at a factory price of 533p/kg, is £1,844.
Market
The current NI mart trade for cull cows is being partly driven by the exceptional cull cow trade in the Republic of Ireland, which is at least 50p ahead of current NI factory cow prices for most grades.
For the week ending 25 October, the LMC noted that P3 cows in ROI averaged the sterling equivalent of 588.2p/kg, which on a 346kg carcase is a total price of £2,035.
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