At last week’s Dairygold Beef Expo in Fermoy Mart, beef farmers and finishers in attendance were told about the importance of sustainability and efficiency inside the farm gate.
However, one farmer in the large crowd questioned how sustainable the beef price is at the moment, and rightfully so.
Base quotes have dropped over the last three weeks to a level that leaves farmers with no profit margin. Rising meal costs and fodder shortages are hanging over farmers’ heads and these price cuts are destroying farmers’ confidence in the market.
If we take a bullock with a carcass weight of 400kg and apply a base price of 375c/kg, we’re looking at a price of €1,500 for this animal.
If we rewind three weeks previous, when steers were quoted at 390c/kg (base), farmers were looking at €1,560 for the same 400kg carcass; this is a difference of €60/head.
This week, processors are offering 375c/kg for steers and 385c/kg for heifers. However, the word on the street is that lower base quotes – of 370c/kg for steers and 380c/kg for heifers – will come into play towards the end of the week.
Looking at the cow trade, beef buyers are starting negotiations with farmers at 280-290c/kg for P-grade cows; 300c/kg is on the table for O-grade animals and 310-320c/kg is being quoted for R-grade cows.
Cattle supplies
The number of cattle processed in Department of Agriculture approved beef export plants increased by 972 head during the week ending September 9.
The total kill for that week amounted to 37,860 head. Looking at individual categories, we can see that number of young bulls processed increased by 23 head – amounting to 2,569 head.
However, there was a slight decrease in the number of aged bulls presented for slaughter; 620 aged bulls were processed – down from 651 the week previous.
During the week ending September 9, 17,130 bullocks were bought by beef factories – a jump of 169 head.
The cow category also witnessed an increase. The total number sent for slaughter was 8,284 head – an 801 head increase. The heifer category recorded an increase; the heifer kill recorded a slight climb of 10 head – amounting to 9,257 head.