This week’s factory quotes show most processors have moved prices for heifers and steers (bullocks) up by 5-10c/kg.
Supplies of finished cattle are beginning to tighten in some parts of the country, while supply is remaining strong in many other parts.
This week marks the final week of the ‘Christmas kill’ at most sites. As a result, factories are eager for choice lots of prime cattle and, in some cases, willing to pay extra where the right cattle are available.
When contacted by Agriland this morning (Monday, November 21), most procurement managers sounded confident when saying there would be no price reductions this side of Christmas and beef price would “at least stay at the same level if not improve”.
Prime cattle factory quotes
Factory quotes for bullocks this week are ranging from €4.60- 4.70/kg on the grid.
Heifer quotes are 5c/kg above steer price at most sites, with prices ranging from €4.65-4.75/kg on the grid available.
In the past two weeks, quotes have moved up by as much as 15c/kg at some sites.
Many factories that were quoting €4.50/kg for steers two weeks ago are paying €4.65/kg for steers this week.
There is some level of concern among cattle procurement bosses on the low level of farmers who are winter-finishing cattle this year.
Many of the major winter-beef finishers across the country have reduced the number of cattle they are finishing, with feed costs and price uncertainty being two of the major causes for this trend. Processors will be hoping the positive momentum on prices over the past few weeks will offer some encouragement to farmers pushing cattle on for a shed finish.
Cows
There is more of a geographical trend in cow price this week too. Factories in some parts of the country are paying more than factories in other parts.
Some of the stronger cow-buying outlets are quoting €4.10 and €4.20/kg for well-fleshed P and O-grade cows respectively (with a carcass weight over 270kg).
€4.40/kg and €4.50/kg is being quoted by stronger cow-buying outlets for well-fleshed R and U-grade cows over 270kg carcass weight.
It is important to note that there is a variation of up to 20c/kg in cow price, and this is most apparent in the P-grade category. Farmers who have short-fleshed cows or cows with a carcass weights below 270kg will be paid at a lower rate than the above quotes.
Well-finished cows remain in high demand and farmers with groups of good beef cows have a little more scope for bargaining this week.
Bulls
Under-24-month bulls are being quoted at prices ranging from €4.65-4.70/kg for R-grades. U-grade bulls are being quoted at 10c/kg more.
O-grade bulls are being quoted at prices ranging from €4.45/kg-4.50/kg and P-grade bulls are being quoted at 10c/kg lower.
Finally, under-16-onth bulls are being quoted at €4.60-4.65/kg on the grid.