Factory quotes for this week have started on par with last week, with demand remaining strong and no deluge of cattle forecast in the coming weeks.
News over the weekend that Brazil – the world’s largest exporter of beef – has halted its beef exports to China following confirmation of ‘atypical’ bovine spongiform encephalopathy (BSE) at two abattoirs in the country, has left many people speculating as to what impact this will have on demand for Irish beef.
The outcome remains to be seen but the fallout of Brazil’s move will certainly be felt on world beef markets and it is hoped that Irish beef can capitalize on the situation – either directly or indirectly.
As we are now in mid-autumn, with ground conditions good across the board, beef cattle are still out on grass across the country and the suitable weather conditions mean farmers are under no pressure to move stock in any direction.
Factory quotes
Starting with heifers, €4.20/kg seems to be the general run of factory quotes again this week with some factories quoting 5c/kg less for heifers over 400kg carcass weight – however this is not proving to be a major issue in this category.
Steer quotes are coming in at €4.15/kg. However, quotes were at this level last week and farmers with good working relationships with their procurement officer managed to secure a base of €4.20/kg for suitable bunches of steers, and this week will likely be no different.
Again, 5c/kg less is being quoted by many outlets for steers over 400kg carcass weight, but farmers with heavy bullocks should negotiate on the weight band and seek leniency on the 400kg limit.
Breed bonuses are still in place for Angus and Hereford cattle of 20c/kg and 10c/kg generally speaking – however more could be secured on the breed bonus where numbers of suitable cattle are available – providing the cattle fit the carcass-spec criteria.
One Donegal-based processor is also offering an additional 10c/kg bonus for in-spec heifers and steers with a carcass weight of between 300-400kg.
Cow price
Looking at cow price this week, €3.90/kg is still on offer for U-grade cows, with regular suppliers of cows securing up to €4/kg for cows in this category.
€3.80, €3.60/kg and €3.50/kg seems to be what farmers are being quoted for good R, O and P-grade cows respectively this week, with some processors quoting less, but failing to secure any significant number of cows when paying prices below those mentioned above.
Again this week, there is scope for bargaining on cow-price with the mart trade for cows also remaining strong and farmers with a bunch of good cows have the ball in their court and should not be afraid to negotiate with the factory agent for a good flat price.
Under-16 month bulls are being quoted at €4.10/kg on the grid and quotes for under-24 month bulls are at a flat price of €4.10 and €.20/kg for R and U grade bulls.
It’s no secret that factories try to buy cattle as cheaply as they possibly can but when demand rises and supply fails to match it, beef price comes under upward pressure and cattle prices rise.
In light of the current beef market situation at home and globally, this trend could well be witnessed in the coming weeks ahead.
While quotes have held for this week, signals would suggest that the next move in beef price is likely to be in an upwardly direction.