Factory quotes: Beef price rises by 75c/kg in 14 weeks

Factory quotes for finished cattle have increased by up to 75c/kg over the past 14 weeks.

Many processors that were quoting €4.50/kg on the grid for bullocks (steers) at the start of November last year have moved their steer quotes up to €5.25/kg for cattle both this week and last week, marking a 75c/kg rise in 14 weeks.

However, there is no change in this weeks’ factory quotes, making it the first week since the beginning of November (14 weeks ago) that factory quotes have not increased by at least 5c/kg.

Factory procurement bosses have told Agriland that supplies of cattle are “okay” for this week. The four-day kill this week as a result of the new February bank holiday weekend has likely taken some pressure off filling out kill sheets for the week.

While beef price has increased substantially since last November and the market remains in a very positive position, it is still some way off the breakeven prices required for winter finishing bullocks.

Prime cattle factory price

Bullocks are being quoted at prices ranging from €5.20-5.30/kg on the grid for this week while heifers are being quoted at €5.25-5.35/kg.

Breed bonuses remain available on both Angus and Hereford heifers and bullocks.

Cow price

Cow price has continued on an upward trajectory too, but factory quotes are failing to reflect the prices that are achievable for R- and U-grade cows and there is a variation of up to €0.15/kg between outlets on cow price.

Department of Agriculture, Food and the Marine (DAFM) figures, available on Agriland, show the average price paid for an R=3= cow in the week ending January 29, was just over €5/kg, while the average U-grade cow price paid was €5.14/kg.

The average price paid for an O=3= cow in that week was €4.72/kg and the average price paid for a P=3= cow in that week was €4.52/kg.

Cows this week

This week, quotes for P-grade cows are ranging from €4.55-4.65/kg for fleshed cows with good carcass weights.

Quotes for O-grade cows are ranging from €4.65-4.75/kg.

R-grade cows are ranging from €4.85-4.90/kg and U-grade cow quotes are ranging from €4.95-5.10/kg.

Factory agents have scope to negotiate on price and farmers that are unhappy with the price on offer from their processor should try their cows at the mart.