This week’s factory quotes for beef cattle see prices remaining firm at most beef processing outlets, despite some procurement staff ‘testing the water’ with lower quotes.
The May Bank Holiday on Monday, May 1, has resulted in a four-day kill this week and some sites are only killing cattle three days per week as supplies of cattle remain stretched.
Over the past number of weeks, almost all factories have reduced the number of cattle they are processing. This trend is happening at a time when supplies of finished cattle are very low in Ireland and weekly beef kills hover just above 30,000 head excluding veal.
Most outlets have their kill sheets filled with cattle for this week and some factory agents are testing the water with lower quotes.
The reality is that while quotes are reducing, prices being paid are edging up slightly and trade is expected to remain firm for this month at least.
The graph below shows the national average price paid for R+3= steers at factories across Ireland is continuing to trend upwards, despite much talk from factory agents of lower quotes.
A look at the average prices paid for R3 steers will confirm the trade is continuing to edge slightly upwards.
Heifers and steer factory quotes
Heifers and steers are being quoted at €5.25/kg and €5.20/kg on the grid respectively with 5c/kg more available at almost all sites for well-finished bullocks (steers) and heifers.
Breed bonuses of 25c/kg for Herefords and 30c/kg for Angus are being paid to farmers at many sites across the country this week.
These breed bonuses range significantly between some processors.
Heavy rainfall across the country continues to leave sub-optimal grazing conditions and is subduing the performance of cattle on grass.
The arrival of finished grass cattle is expected to be somewhat delayed in many regions this summer due to the weather conditions.
Cow price
Cow price continues to perform strongly this week with Irish cow price ahead of Northern Ireland despite Irish steer price being €100/head behind NI prices.
Some processors have put forward reduced quotes for cows this week while others have held their prices for good cows but admitted the trade for plainer-type parlour cows is coming under some pressure.
In the week ending Sunday, April 23, the average price paid for a U=3= cow was just over €5.35/kg. The average price paid for an R=3= cow was just under €5.20/kg.
In the same week, the average price paid for an O=3= grade cow was just over €4.75/kg while the average price paid for P=3= cows was just under €4.57/kg, according to figures from the Department of Agriculture, Food and the Marine (DAFM).
Assuming trade has held steady since then, it can be expected similar average prices are available this week with more money avaliable at some sites.
Bulls
Under-24-month bulls are being quoted at a flat price of €5.35-5.45/kg on the grid for U-grade bulls with more money being paid in some cases. R-grade bulls are being quoted at 10c/kg below this level.
O- and P-grade bulls are being quoted at €5.15/kg and €5.05/kg respectively with more money available in many cases.
Finally, under-16-month bulls are being quoted at €5.20-5.25/kg on the grid.