Seven reasons to resist factory pressure on cattle - IFA
The move by the factories to pull quotes and talk down the trade is an attempt to force out very tight supplies of prime cattle, IFA president Joe Healy has said.
Here’s seven reasons for farmers to resist factory pressure on prices:
1. Steer base prices are currently €4.10 to €4.15/kg and heifers are €4.20 to €4.25/kg, with some top prices of €4.30 paid.
2. UK cattle prices are up 14p/kg or 17c/kg since 1 April. UK prices are running 40p/kg or 48c/kg ahead of this time last year.
3. UK cattle prices (R3) steers are £3.70, which is equivalent to €4.48/kg incl VAT at an exchange of 87p/€.
4. Irish slaughterings are running 30,209 head above last year.
5. Despite numbers being higher, carcase weights are down this year. For the first four months, steer weights are back 9.6kg.
6. In addition, live exports are very strong this year, up 35,000 head at 116,000 head. Over 90,000 calves have been exported and exports to Turkey are also very strong. Purcells currently are filling a contract for 20,000 head. It is expected there will be further contracts as the year progresses.
7. Grass growth is very strong and cattle are thriving well, with no pressure on farmers to sell.
Lighter carcase weights and a strong live export trade will help to negate the impact of higher numbers for the second half of the year, IFA national livestock chair Angus Woods said.