Kantar Worldpanel figures reported by the Agriculture and Horticulture Development Board (AHDB) have shed some light into explaining what underpinned higher demand for beef towards the end of 2017. British consumers spent 1bn more on groceries at Christmas, compared with 2017 levels, with sales of beef and lamb highlighted for their contribution to the strong performance.

Roasting joints were singled out for their performance, while sales of stewing beef, steaks and mince also all recorded growth. The report says that sales of fresh and frozen beef showed a 5.8% year-on-year increase in value and a 3.3% increase in volume, which no doubt provided a significant boost in demand for Irish beef exports.

Steady trade

The appetite for beef in the final months of 2017 has unfortunately been absent in 2018, although the trade is showing more signs of steadying. Lower base quotes of €3.85/kg for steers and €3.95/kg for heifers have, in most cases, been resisted with the general run of prices being a base of €3.90/kg for steers and €4.00/kg for heifers. At the top end of the market, producers handling large numbers have secured 5c/kg higher.

This remains the case across all categories of stock, with the only difference being an even wider price differential between top and bottom prices for cows and young bulls. P+3 grading cows continue to range on average from €3.25/kg to €3.35/kg, while O grades have an even wider differential ranging from €3.30/kg to €3.50/kg. R grades range in the main from €3.50/kg to €3.60/kg, but up to €3.70/kg has been paid to specialist finishers or where cows have been traded in large numbers with a mixture of U grades.

Bull prices are steady. R grades are selling from €3.85/kg to €3.90/kg, while U grades are selling from €3.90/kg to €4.00/kg. O grading Friesian bulls are trading from €3.65/kg to €3.80/kg, with conformation, numbers offered and the purchasing plant having a big influence on price. Bulls less than 16 months and trading on the grid are selling from a base of €3.90/kg to €3.95/kg.

NI trade

There is no change in the northern trade. Base U-3 steer and heifer quotes remain mainly at a range of £3.52/kg to £3.56/kg, which at Monday evening’s exchange rate of 88.6p to the euro equates to €3.97/kg to €4.02/kg or €4.18/kg to €4.24/kg including VAT at 5.4%. Regular sellers continue to command significantly higher prices, with top prices rising to the low- to mid-£3.60s.