While last week’s factory quotes saw processors at the lower end of the scale increase quotes by 5c/kg, it seems this week, a few processors are now pushing ahead on quotes for better-type cows and heifers.
It’s no surprise that processors are always conservative when quoting what they are paying for beef and tend to leave some room for negotiation, particularly in the cow, bull and ‘out of spec’ cattle categories.
While cattle prices are in a good position and remain under continued upward pressure, it is not without reason as a look at the Bord Bia cattle price dashboard shows on the week ending Saturday, January 15, the average Irish R3 factory steer price was 20c/kg behind the equivalent EU average beef price.
Starting with heifers for this week and while €4.35/kg on the grid is the general run of heifer quotes this week, some processors have said they are willing to pay €4.40/kg for suitable, better-type heifers.
Next up is steers and €4.30/kg is what the majority of processors have quoted for bullocks this week.
Factory breed bonuses remain in place on Angus and Hereford cattle and processors remain particularly eager for prime cattle of these breeds.
A 10c/kg carcass bonus is currently available for cows, heifers and steers with a carcass weight of between 300-400kg and for bulls with a carcass weight of between 320kg and 400kg at Foyle Meats, Co. Donegal.
Cows are continuing on a strong trajectory this week as better-type R and U-grade cows are being quoted at €4.00/kg and €4.10/kg respectively.
O and P-grade cows are being quoted at €3.80/kg and €3.70/kg respectively, however, regular suppliers of cows are likely securing 10-15c/kg more than the above quotes.
U24-month bulls are being quoted at a flat price of €4.25/kg for an R-grade with €4.15 and €4.05/kg on offer for O and P-grade bulls scoring a plus in their grade and a 2+ or above in flesh.
Finally, U-16 month bulls are being quoted at €4.25/kg on the grid.
Commentary
Conversations with procurement officers around the country would indicate that bullocks seem more freely available than heifers currently and a look at the most recent beef kill figures would confirm this.
Procurement staff have also outlined that finished, O-grade type dairy-bred stock are in no short supply but better-type suckler-bred heifers and steers are proving harder to secure and processors are willing to pay a bit more in situations where they come across a well-finished bunch of R and U-grade cattle.