This week will see most factories operate a three-day kill as a result of St. Patrick’s Day on Thursday, March 17, and the subsequent public holiday on Friday, March 18.
Generally, when processors are presented with a four-day week, kill sheets are filled with greater ease and a price rise is rarely seen. However, 2022 has so far been a year like no other in the beef trade.
Despite the unusual three-day kill this week, lower base prices have still managed to moved up in all categories.
While lower quotes have moved up, some processors are still lagging behind and a difference of about 15c/kg has emerged in heifer and steer base prices.
Starting with heifers and €4.70/kg on the grid is freely available for this week, with €4.75/kg on the grid being secured in some cases also.
Well-fleshed heifers of all breeds with carcass weights of between 300-400kg can fetch up to 10c/kg higher in some processing outlets, and farmers should enquire if a weight bonus is also available.
Breed bonuses on Angus and Hereford heifers and bullocks are also in place ranging from 15-30c/kg on these cattle, and farmers should enquire what the breed bonus on offer is before agreeing to book in prime cattle of these breeds.
This week’s quotes makes a flat price of €5.20/kg available for R- and R= grade in-spec Angus heifers at the higher end of the scale.
More appealing flat-price deals are being secured in many cases. However, farmers with cattle to sell will find kill sheets are as good as filled for this week in many factories.
Where this is the case, farmers with factory-fit stock may have to sit tight until early next week.
Procurement staff have predicted positive pressure will remain on beef price until at least midsummer’s day and next week will likely see prices hold, if not, further uplift on beef cattle price.
Looking at steer price now and €4.65/kg is the general run of prices this week with €4.70/kg on offer in some cases.
With cows, while there is variation on price in each grade depending on the cow’s fat cover and carcass weight, a well-fleshed P-grade cow with a carcass weight above 270kg is being quoted at €4.00- €4.10/kg.
€4.10-€4.20/kg is on offer for heavy fleshed O-grade cows and €4.30-€4.40/kg is on offer for R-grade cows.
A well-fleshed U-grade cow is making €4.50/kg at the higher-end of the scale currently.
Looking at under-24 month bulls now and a flat price of €4.65/kg is on offer for R-grade bulls this week, with €4.75/kg on offer for U-grade bulls.
O-grade bulls are making €4.45/kg with scope for more to be secured where bunches of well-finished bulls are presented.
Finally, under-16 month bulls are being quoted at €4.60-€4.65/kg on the grid.
While beef prices are currently in a strong position, the soaring input costs will quickly erode any gains from the market and 2022 is set to be a tough year for beef farmers as a result of the rising input costs.