Processing demand for slaughter-fit cattle is outstripping supply in the Republic of Ireland (ROI), forcing some plants to raise base quotes by up to 20c/kg this week.

Once quality assurance premiums are applied, this pushes Irish beef prices ahead of those on offer at NI plants.

At the upper end of the market, Irish plants are offering deals of €5.60 to €5.70/kg for U3 heifers with premiums included. Excluding VAT, this coverts to a sterling equivalent of 446p to 454p/kg for heifers.

Steers at the same grade are making 10c/kg less in most instances, putting them more in line with prices paid at NI plants this week.

It is a significant turnaround for the beef trade south of the Irish border, as prices have lagged well behind those on offer at local plants throughout the winter.

Quotes

In NI, base quotes for prime cattle have increased at several plants again this week, with 428p/kg on offer for U-3 animals.

However, farmers continue to secure deals of 440p to 446p/kg for in-spec stock, with cows on 380p to 400p/kg.

Marts

At the marts, a red-hot beef trade has brought strong buying demand, with prices for short-keep cattle typically up 25p/kg year on year, worth £175 on a 700kg store.

Analysis of mart prices this spring shows good-quality short-keep steers averaged 269.4p/kg, up from 244.2p/kg last year.

For good-quality fleshed heifers, prices averaged 260.2p/kg this spring, up from 236.8p/kg in 2021, which is an additional £152 on a 650kg animal.

Prices have strengthened further in recent weeks as beef prices moved above the 440p/kg barrier, with mart managers regularly reporting that U grading animals are achieving prices above 270p/kg. At a kill-out of 59%, this equates to a beef price in the region of 458p/kg.

The price gap to 2021 is narrower for plainer cattle, with Friesian bullocks averaging 196.6p/kg this spring compared to 180.4p/kg.

For grazing stores, with farmers faced with much higher input costs in 2022, prices are similar year on year, with animals between 400kg and 50kg typically making 260p/kg.

Cows

The biggest increases when compared to last year are for good-quality continental cull cows.

Slaughter-fit types have averaged 223.4p/kg this spring, compared to 192.4p/kg in 2021, a differential of £232 year on year for a 750kg animal.

Again, prices have increased over the past month, with top-quality cows now pushing towards 240p/kg.

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