Pressure remains on beef prices with factories moving to reduce prices by a further 5c/kg.

There are still some deals being completed at a base of €3.80/kg for steers and €3.90/kg for heifers with these prices secured in areas where there is less pressure on farmers to move stock or in plants that have a lower supply base and have to work harder to secure the required throughput.

Reducing prices

The main processing plants have started the week by trying to reduce prices in deals being completed for today onwards to a base of €3.75/kg for steers and €3.85/kg for heifers.

Some agents have commented that supplies are not actually that plentiful and that numbers would be much tighter were it not for deteriorating ground conditions encouraging farmers to move stock faster.

This is resulting in a different picture emerging regionally with some plants keen to kill cattle as soon as possible while in areas worst affected by the weather there is a backlog of a few days in some cases.

Weakening sterling

Factories point to a continued weakening in the value of sterling to the euro as creating significant marketing difficulties in the UK, our main market accounting for over 50% of exports.

The exchange rate has stood at over 92p to the euro for over a week and fluctuated in recent days between 92p and 92.5p to the euro.

Below Britain and EU

The latest reduction in beef prices has resulted in Ireland falling below British prices and also prices in other European countries.

British prices are steady at an average of £3.80/kg to £3.82/kg or the equivalent of €4.12/kg.

This leaves a price differential between an equivalent 350kg carcase at about €120.

The latest Bord Bia price analysis shows R3 young bulls trading for €3.88/kg in Germany, marginally ahead of French R3 young bull prices of €3.81/kg while a significant gap has opened to Italian young bull prices of €4.13/kg.

All of these prices are exclusive of VAT with the Irish R3 steer price excluding VAT at the bottom of the list at €3.78/kg.

Young Bulls down

Young bulls are also facing the same downward pressure as steers and heifers. R grading bulls moving in small numbers are being offered a price of €3.80/kg with some plants also trying to reduce prices by 5c/kg.

U grading bulls are trading 10c/kg higher with specialised finishers securing a 5c/kg higher price, excluding producer bonuses.

Bulls less than 16 months and trading on the grid are selling on a base of €3.75/kg to €3.80/kg.