With local beef processors over the next few weeks servicing orders in the run up to Christmas, the trade remains strong, and prime cattle prices continue to edge upwards in NI.

New lockdown restrictions in Britain are also expected to underpin retail demand for Red Tractor assured prime beef.

But with parts of the food service sector again closed, this is having a negative impact on demand for manufacturing beef, with local reports that factories are showing less appetite for cows.

It is a similar story in the Republic of Ireland, which is a key supplier of beef into the food service sector in Britain.

Prices for cull cows are typically 290p to 300p/kg for R grading animals

Base quotes in NI have moved up another 2p/kg this week for prime cattle with several plants now quoting 362p/kg for U-3 grading animals.

However, that continues to fall short of price deals on offer, which range from 366p/kg to 372p/kg for in-spec steers and young bulls, with heifers moving at 376p/kg.

Prices for cull cows are typically 290p to 300p/kg for R grading animals, although indications are that prices are expected to come under pressure next week.

Supplies

Factory agents maintain that supplies of cattle are adequate to meet their needs. However, farmers report a backlog at some factories to get animals killed under native breed schemes.

While numbers of Angus crosses in particular are strong at this time of the year, other factories are still keen to secure additional supplies, so farmers should shop around.

Factory personnel having to self-isolate due to contact with a COVID-19 case is an added complication for the industry at present, and it can limit throughput in a particular week.

Sheep

Meanwhile, demand for fat lambs continues to harden, with factory quotes rising by 5p to 445p/kg this week, although deals are more typically at 450p/kg.

Competition for factory-fit lambs between local plants and agents for working for Republic of Ireland processors is extremely sharp as supplies start to tail off and quality becomes variable.

Southern plants are paying around €5.40/kg to 22kg, which converts to a price of 460p/kg.

Local plants have indicated that carcase weight limits may increase to 22kg next week.

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