Brexit still unsettling buyers and sellers

“THE issues raised by the dispute between Unilever and the supermarkets has brought Brexit to the fore and hasn’t helped confidence in the trade”, said Sean Ryan of Sixmilebridge, putting words to the unease felt across all sectors of the cattle business last week.

Everybody in the beef sector depends on the health of the British economy for a living, so the Unilever-Tesco spat over Unilever’s attempt to maintain its margins with a 19pc high in prices came as very nasty reminder of exactly how exposed the Irish economy is to the vagaries of the currency markets.

Another mart manager who wished to remain anonymous saw the effect in an “acceptance” among those selling to take less.

“They are not happy but they’re taking less this week,” I was told.

It is also true that some chose to bring stock that didn’t meet their sales reserves home in the hope of calmer seas ahead.

While this is the general framework into which an analysis of last week’s ringside figures has to be placed other factors such as the weather and factory prices for finished stock should not be ignored either.

Looking at the bullock table first, the 4c/kg price slide of two weeks ago for everything from 400-599kg (€16-24/hd), continued last week with another 4c/ kg wiped off the average values of these animals.

This sees the two week loss at a significant €32-48/hd. The lighter 300-399kg animals treaded water last week with their average price unchanged at €2.10/kg or €630-838/hd.

A closer look at the averages shows that at €2.33/kg for a continental, or €699-930/hd, the price difference back to the equivalent weight Friesian in this section is from €243324/hd.

Herefords and Aberdeen Angus come in at an average of €1.86/kg, which gives them an average price spread of €558742/hd.

I mention this because as you go up the weights the average price per kilo doesn’t really vary that much for either the Herford/Angus or Friesian bullock - indeed both are fairly consistent.

The Hereford/Angus animal hits a high of €1.87/kg in the 400-499kg weight category before dipping to an average price of €1.80/kg in the over 600kg section. That’s a variation of 7c/kg from one end to the other.

The Friesian does its price spread in reverse to the continental. The Hereford/Angus goes from an average of €1.52/ kg at the lighter end before rising - albeit slowly - to €1.56/ kg at the heavier end. That’s just a 4c/kg price spread.

Now look at the continental averages - €2.33/kg among the lightest stock and then falling steadily before bottoming out at €2.01/kg in the 600kg+ division - a 32c/kg price spread.

Those figures ask an awful lot of questions; questions which I suspect might even defy that legend of pure logic that was the late Mr Spock of Star Trek to explain satisfactorily.

A quick look at the heifers shows universal downward movement, with the over 600kg heifer faring the worst by losing 9c/kg on the week or a minimum of €54/hd.