Beef trade: Prices stagnate but processing capacity greatly reduced

The beef protests – in some form or another – have been going on over the past number of weeks and have been a major talking point.

A new wave of protests were announced by the Beef Plan Movement (BPM) on Saturday last, although this time the target is retail distribution centres.

However, farmers are still protesting at factory gates, and this has led to further throughput difficulties. During the week ending September 1, some 30,000 head of cattle were slaughtered in beef processing plants – a fall of approximately 4,000 head.

However, kill numbers are expected to be back further from last week.

According to a statement by Meat Industry Ireland (MII), 20 plants are still being blockaded by farmer protesters, representing 80% of processing capacity.

Where possible, the show still goes on and there is little change to prices on offer this week. Prices for steers are at 345-350c/kg, while base quotes for heifers stand at 350-355c/kg.

Beef buyers are starting negotiations with farmers for P-grade cows at the 280-285c/kg mark, with O-grades at 290-300c/kg. Moreover, R-grading cows are securing 330c/kg plus depending on quality.

Factory agents are quoting in the region of 340-350c/kg for R-grade bulls and procurement managers are quoting upwards of 345-355c/kg for U-grades. O-grade bulls are hovering around the 310-330c/kg mark; under-16 month bull prices are 340c/kg.

Figures from the Department of Agriculture’s beef kill database show that some 30,188 cattle were slaughtered – a decrease of 4,000 head on the week before; all categories recorded a fall in supplies.

Yearly supplies are sitting at 1,190,212 head – an increase of 28,760 head up to and including the week ending September 1.