Factory quotes for finished cattle have increased by up to 10c/kg this week at certain outlets, however some farmers will argue that the explosive mart trade seen for all types of finished cattle at marts over the weekend is outperforming the price available at the factory lairage.
It appears the price increases in the beef trade are being driven by a shortness in supply rather that an increase in market returns as the Irish composite beef price is currently 31c/kg above the export benchmark price.
To put this into perspective, last October, Irish composite price was 48c/kg below the export benchmark price.
Agriland contacted a number of marts that hosted sales over the weekend. Some of the mart venues quoted examples where bullocks that would grade an R3 were making as high as 20c/kg over and above what they would come into at the factory.
Farmers with finished cattle to sell over the coming weeks will be well aware of the huge costs they have incurred over the winter and should ensure they are receiving the best price available, be it at the mart or the factory.
Last Friday, Agriland reported that at least two factory chains have started slaughtering cattle that are eligible for export to China. These outlets confirmed they had struck deals with customers for Irish beef in China.
It is important to note that only a small percentage of the carcass cuts are purchased by Chinese markets and these are mainly lower-cost forequarter cuts. Despite this, a new market for Irish beef is always a positive development.
It is expected that the key driver of the Irish beef trade in the coming months will not be the Chinese market but the level of demand for forequarter cuts of beef in key UK and European markets.
Prime cattle quotes
Quotes for heifers are ranging from €5.25-5.35/kg on the grid this week, while steer price is being quoted at €5.20-5.30/kg on the grid. Add the 20c/kg Quality Price System (QPS) bonus and that leaves R3-grade heifers at €5.55/kg and R3-grade steers at €5.50/kg plus breed bonuses where relevant.
Angus and Hereford breed bonuses are ranging from 5-30c/kg, depending on the outlet.
Factory cow price
U-grade cows are being quoted at flat prices ranging from €4.90-5.00/kg. R-grade cows are being quoted at 10c/kg below this level.
O-grade cows are being quoted at €4.60-4.70/kg and P-grade cows are being quoted at €4.50-4.60/kg.
Factory cow kills are at present, primarily composed of P-grades and farmers with fleshed cows with carcass weights over 270kg have grounds to negotiate a higher price.
Bulls
Under-24-month bulls are being quoted at a flat price of €5.35-5.40/kg for U-grades with €5.25-5.30/kg on offer for R-grade steers.
O-grade bulls are being quoted at €5.15-5.20/kg and P-grade bulls are being quoted at €5.05-5.10/kg.
Under-16 month bulls are being quoted at €5.15/kg on the grid.