Farmers selling bulls are losing €200/hd compared to this time last year as factory agents try to buy bulls this week at €3.55/kg.

This is a drop of almost €0.50/kg when compared to the same period last year and equates to almost €200/head on a 390kg carcase.

The Irish Farmers Journal understands a number of factories have contacted large producers saying bull beef is becoming increasingly hard to sell and that UK supermarkets are offering a discounted rate on young bull beef.

There is also some talk within the industry of young bulls coming off the grid payment system. If this happens the economics of the bull beef system will be severely challenged, forcing more farms down the steer beef route.

It will seriously affect bull finishers’ buying power around the ring in autumn as these customers were always at the top end of the market for the top-quality weanling.

Factories are still adamant that their customers don’t require bulls and they have to shift them at a discounted rate compared to steer or heifer beef.

They also say retailers in particular are swaying away from bulls. The UK retail market currently accounts for approximately 16% of Irish beef exports. One industry source has said “under-16-month bull beef is just costing too much on the grid in the current climate”

Up to 5 July, some 16,655 extra young bulls were killed when compared to 2018 kill figures.

It was thought that the flush of spring 2018 bulls had been processed through the system, but numbers have held steady.

Some 4,764 bulls were killed last week, up 600 on the corresponding week last year.