Farmers digging in for €3.70/kg on bullocks

Steers Heifers Cull Cows Young Bulls THERE were three questions on the minds of farmers and factory agents I spoke to yesterday morning in relation to the beef trade.

One, if €3.60-3.65/kg was the general quote yesterday for bullocks with heifers 10c/ kg above this at €3.70-3.75, how long before we see real upward pressure on price. Two, how many cattle are left to be killed and how many of those will come directly off of grass? Three, how long can we expect the dry weather to last?

The expectation is that cattle numbers have to tighten and that prices will have to rise between now and Christmas.

However as we all know, those in the processing sector are masters at drawing out price increases.

I did get reports that farmers were digging in at €3.70 for bullocks and I also have had reports of factories tapping their own feedlots for supplies.

However, feedlots are always turning cattle and as one man pointed out to me they might very well choose to empty a shed or two so as to fill up on cheap stores; although last week mart prices rose by between €20-40/hd.

A lot of farmers do have a tendency to stick rigidly to just one factory and that makes them easy targets for soft sales talk which is why Angus Woods IFA’s beef chairman is urging farmers to “pick up the phone and contact other factories if your one isn’t up to the mark on price”.

Angus also noted that the ball is coming back into the farmer’s court especially in re- lation to in-spec stock. “They are becoming premium,” he said.

Moving to bulls the expectation is that more under 16 month-old bulls are coming online, but they remain relatively static in relation to price.

Quotes however vary with some factories trying their case at prices as low as €3.70/ kg for Us with Os back at €3.50 and Rs on €3.60/kg.

These prices won’t cut the mustard I expect with 10c/kg above these levels the minimum reality.

The cull cow market continues to thrive with reports over the weekend that some marts saw considerable cull cow activity as those with sheds to fill drove prices ringside upwards.

Cow prices

At the factory gate cow prices remain largely unchanged with quotes varying by 5-10c/ kg up or down depending on the buyer.

My prices this week are pitched from €2.95/kg for P+3s to €3.20 for Rs with Os on €3.00-3.10/kg. The general feeling is that where suitable stock and numbers are available those genuinely involved in the cow trade won’t be inclined to leave them behind.

As one agent told me, “Cows, they are always wanted”. A factory agent contacted me recently and asked that farmers with cows to sell be aware of the dangers of grass tetany as he has come across several cases recently.

The disease is due to a magnesium deficiency in the diet and does not always manifest itself in clearly identifiable symptoms.