Increased competition for slaughter-fit and short-keep cattle has injected new life into the mart trade, where prime cattle are returning prices above those of local meat plants.

That is particularly the case for prime beef heifers, with good-quality U grading animals weighing over 600kg repeatedly realising prices of £1,350 to £1,400 at mart sales held over the past week, rising to £1,450 at the upper end of the market.

With a general price range of 210p to 220p/kg on offer for good-quality continental animals, a 640kg heifer at the upper end of the market is returning £1,408.

Price equivalent

Assuming this animal kills out at 58% (given it has weighed empty in the ring), the heifer will produce a 371kg carcase.

That would require a factory price of 380p/kg to compete with the live trade.

Strong prices are also being paid for short-keep heifers over 500kg, which are making upwards of £1,100 on a regular basis depending on quality

Reducing the live price to 210p/kg means the same heifer requires an equivalent 362p/kg.

With factories holding base quotes for U3 animals at 344p/kg, and deals of 350p to 354p/kg on offer for regular finishers, a 371kg carcase is worth approximately £1,313 at the upper end. It is a differential of £30 (at 210p/kg live) to £95 (at 220p/kg live) in favour of the mart trade.

Strong prices are also being paid for short-keep heifers over 500kg, which are making upwards of £1,100 on a regular basis depending on quality.

Improved demand

Mart managers spoken to by the Irish Farmers Journal put the improved demand partly down to the fact that larger finishers have now worked through the backlogs experienced in slaughtering cattle in late 2018, and have returned to the mart to restock sheds.

In addition, cattle quality has also improved significantly in the rings, and this has also intensified buying competition.

Warning

Meanwhile, in a message to local factory owners, Sam Chesney, chair of the Ulster Farmers Union beef and lamb committee, has warned that beef finishers are experiencing heavy losses from winter finishing. He urged farmers to resist current quotes on offer, and bargain hard for better prices.

“The live market seems strong now so farmers must consider all possible options when selling stock” said Chesney.

He added: “Farmers are struggling as they carry the burden of rising production costs. All we want is for beef farmers to get a fair and sustainable price - one that will keep both farmers and processors in business”.

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