Quotes fall to €3.60/kg as factories blame pound

Steers Heifers Cull Cows Young Bulls SUPPLIES to the factories remained strong last week as farmers continued to move fit stock off of grass.

While exact figures were not available yesterday morning, the expectation is that the total figure for last week remained in the 35,000-36,000hd region, as it has done for the last three weeks.

The average price for steers and heifers, respectively, settled at €3.65/kg and €3.75/kg by the weekend, although some plants did give €3.70/kg for inspec bullocks for slaughter on Monday. However, this is very much the exception by now.

More worrying was talk from some agents that another 5c/kg drop, to €3.60 for bullocks and €3.70/kg for heifers, was being planned for later this week.

Farmers seemed to be accepting this new low of €3.65/kg on the basis that it was expected. This price was first mooted by factories three weeks ago, but they have had a real struggle to make it stick.

However, with sterling weakening to 89p to the euro over the weekend, the processing sector are now giving the impression that they are moving as one solid and coherent unit.

The IFA were critical of the moves, pointing to the 41p/kg increase in British beef prices since May. The R3 steer price in Britain for week ended October 15 was €4.24/kg, €160/ hd higher than the €3.79/kg for Irish equivalents.

This is against a backdrop of in-spec cattle becoming scarcer due to the dairy calving profile - the majority of stock from this sector that are still under 30 months is dwindling fast.

The advice is the same as always - shop around and don’t be afraid to seek quotes other than from your normal agent.

To this end I had two dramatically conflicting reports on the price of Friesian bulls at the weekend. One price was as low as €3.55/kg quoted for O grades on Friday, while on Monday another agent I know continued to quote bulls at €3.80 for U’s,€3. 70 for R’s with O’s on €3.60/kg. Crucially, those prices stood for Friesians as well.

Interestingly, the same buyer indicated that if numbers were available those O grades could conceivably get €3.70/kg. It’s likely that the earlier quote of €3.55/kg was probably from a plant that didn’t have contracts for bull beef and they would only be taking them to kill and then sell on as carcase beef to another factory.

Cow prices have not necessarily slipped, but as of yesterday morning settled more at the lower edge of last week’s quote range.

R grades were on €3.20/kg, O’s €3.00/kg with the better P’s and P+’s on €2.90/kg. Once you go into the lower grade P’s it can be a bit of a lottery so it is better to establish exact prices before hand.

Bord Bia report Cattle supplies at Irish export meat plants for the week ending October 15 were just under 36,000 head, which was around 14pc or over 4,000 head higher compared to the corresponding week last year.

Cumulatively, supplies of young bulls are up 29pc compared to the equivalent period in 2015, while cows are up 8pc on 2015 numbers. Heifers are up 1pc while steers are on a par with year previous levels.

Total year-to-date supply at export meat plants is up 5pc or over 55,000 head at around 1.28 million head.