“We are not being overrun with the supplies of cattle available” were the words of one procurement manager this week. This is a trend being seen across a number of plants.

In the beef trade, factories are trying to slow down and cap any further rise in quotes for bullocks or heifers. Yet the limitation to supply is resulting in some plants showing their hand and having to offer a little bit extra.

Heifers are starting at quotes of €3.85/kg, with deals of €3.90/kg also being secured.

Bullocks are generally priced at €3.80/kg this week, with an additional 5c/kg achieved by some finishers, depending on the load.

Some good news for finishers is that the cow trade is continuing to rise and has seen quotes increase by 5-10c/kg in plants. 

As previously reported by Agriland this week, factory agents are very enthusiastic for cows at recent sales in marts, and are contesting to hoover up the supplies available. The northern customer is also proving to be a strong competitor.

Also Read: Cattle marts: Improvements being seen in the dry cow rings

Starting with the P-grades, these are valued at €3.10-3.15/kg this week, while O-grades are selling up to €3.30/kg. R-grades are being quoted from €3.45/kg, up to heights of €3.65/kg, depending on flesh and quality.

In the bull trade, young males under 24-months are priced at €3.65-3.75/kg (O-grades) and €3.80/kg (R-grades). U-grades are securing deals of €3.85/kg, with prices moving up to €3.95/kg.

The under 16-month-old bull quotes are beginning at €3.75/kg.

‘Impossible to understand why beef price remains subdued’

Speaking about the beef prices available for finishers this week, Edmund Graham, beef chair of the Irish Cattle and Sheep Farmers’ Association (ICSA),  stated that it is inexplicable how beef price is not “well above €4.00/kg”.  This is regarding the fact that all the supply and demand metrics are favourable in 2021.

He added: “The fact that Irish beef price has been essentially static for months at a time when prices elsewhere are hardening, along with favourable strengthening of sterling, suggests there is an orchestrated effort being made by factories here to keep a lid on prices.”

Commenting on the news of a deal on beef exports, including over 30 month old beef, he added that this is “further reason” why beef prices should be on an upward curve in the medium-term.

Beef factories cannot evade market realities when there are positives. The last piece of the jigsaw will be the reopening of the Chinese market.

“It is absolutely unacceptable that every time there is bad news or unfavourable market trends, we get hit with instant price cuts, but now that everything is in our favour there is an inexplicable refusal to reverse prices which have been suppressed for the past two years,” Graham concluded.

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Beef Kill

The beef kill for the week ending March 21, reached 29,125 head (excluding a veal kill of 2,130 head).

The number processed has dropped week-on-week, with a deficit of 1,761 head of cattle killed (excluding veal).

A contributing factor of the reduced number of kills was less processing days due to St. Patrick’s Day occurring mid-week. 

The kill continues to fall behind by 6,555 head (excluding veal) compared with the same period last year.

Looking at the figures from last week in more detail, the number of steers killed tallied to 12,758 head – 995 head less than the numbers processed the previous week.

There was a slight rise of 38 head in the heifers slaughtered, as the total kills amounted to 8,901 head last week.

The young bull kill reached 2,175 head last week, which is behind by 1,110 head when looking at the numbers processed during the same period in 2020.

Meanwhile, there was a deficit of 411 head of cows slaughtered last week in comparison to the previous week – with the throughput hitting 5,697 head.

Week-on-week beef kill changes:

Steers: 11,790 head (-995 head or -7.7%);
Heifers: 8,901 head (+38 head or +0.4%);
Cows: 5,697 head (-411 head or -6.7%);
Young bulls: 2,175 head (-454 head or -17.3%);
Bulls: 562 head (-34 head or +6.4%);
Total: 29,125 head (-1,761 head or 5.7%).