Lighter and younger stock up by €57-84/hd
THE cattle trade in the last few weeks as been as lopsided as last Sunday’s Leinster and Connacht Football finals.
Confidence had ebbed away from buyers following the Brexit debacle, however, last week saw significant price rises restore mid season order especially to the cattle under the 500kg mark.
There were more buyers about tempted to some degree by recent price falls especially among the plainer and lighter stock.
Their intent was no doubt to mop up some bargains assuming prices stayed low however that failed to materialise. The lighter Friesian store who had suffered so badly post-Brexit losing up to €140/hd in a few short weeks was obviously viewed now as being chronically undervalued.
Friesian stores rose spectacularly, especially in the 300-400 bracket, where he regained 19c/ kg to stand on an average price of €1.64/kg up from €1.45 of two weeks ago — in rounded out figures that’s a rise of €5776/hd.
As Michael Harty manager of both Nenagh and Roscrea marts commented: “The days of buying Friesian’s at €1.50/ kg or under are over.”
However the overall average price across all breeds at this weight did not move at all.
The average price of the better or “top quarter” section actually fell by 12c/kg as those buyers moved their money to where they perceived the value to be, which in turn saw an average rise across the board of the bottom quarter by 21c/ kg or €63-84/hd.
As you go up the weights the gains are lower, for example there was only 2c/kg or €8-10/ hd of an increase across both the top and bottom quarters of the 400-499 bullock section.
While in the 500-599kg section the average price actually fell by 1c/kg or €5-6/hd with the 600kg+ bullock faring marginally better with a €6/hd or 1c/kg rise.
It all looks well and good until you realise that above 500kgs Friesians have, to quote a local factory agent and farmer I know, “fallen totally out of bed” and it’s their malaise that is stopping last week’s increase in the price of the better stock from being reflected in these categories averages.
There are two main reasons for the fall in price at the marts of those heavier Friesian cattle.
Firstly the factory base prices which this week sits on €3.85kg for bullocks, and the second factor is age.
Those earlier born 2014 bullocks are suffering the most as they are back almost €100 in places as buyers take cognisance of factory cut off dates and potential penalties.
However later born 2014 stock, particularly good continentals, are in no way as effected with €1,400/hd paid in Kilkenny last Thursday for August 2014 born Continentals, that’s €2.21kg which is almost exactly in line with the ringside average of €2.24/kg for the top quarter of the continental animal.
Another reality of course is an awful lot of Friesians never make that basic base price as they tend to grade down the grid because they don’t carry enough beef relative to their size or bone structure to see them tick the necessary conformation boxes.
These factors coupled with a market where the price is falling has seen as my friend said that older heavier Friesian more so than anything else “fall out of bed”.