Plants willing to pay an extra few euro for quality stock

THERE can be little doubt that there was movement in factory prices last week with for once the news being in the farmers favour.

Yesterday morning while agents were conceding that prices for bullocks had moved, there was a reluctance to publicly admit that for much of the country the base price in reality for last week was €3.85/kg as opposed to their quotes of €3.80/kg.

Now there can be little doubt different grades and quality always have a bearing and that some deals may see €3.80/kg as a base this week.

Even so, the majority with shed cattle have to start on €3.85.

The story with heifers is similar; €3.95/kg is the accepted base. This is what you’ll be quoted. However, I spoke to one man who turned down €4.00/kg.

Each to his own but there is little doubt factories want stock and are not leaving cattle behind them for the want of 5c/kg.

Similarly, cow prices have hardened.

We’ve now arrived at a situation where P+3 cows are being flat priced alongside O grades at €3.20/kg, while other P3s are coming in at just 10c/kg less at €3.10/kg. This leaves your O grade cow somewhere between €3.20/kg and €3.30/kg, with R grades on €3.40-3.50/kg.

Again, there is resistance from buyers to giving the higher-end price, but where numbers or good relations are involved deals are being done.

In contrast to the general run of the trade, bull prices remained relatively static yesterday morning, with the base price for those under the 16-month threshold stuck on €3.80/kg, while the 16-month to 24-month animal is also unchanged at prices of €3.90/kg for U grades, back to €3.70 for O grades. R grade bulls are on €3.80/kg.

Bull numbers are now running below last year’s figures; and with apparent movement in all other sections, those men with bulls to sell might just begin to see a tightening.

Imports

Department of Agriculture figures show that 14,004 bovine animals were imported into this country for immediate slaughter in 2015 which was a rise of 5,000 on the 2014 figure.

Figures for 2016 are as yet unavailable.

What is most striking about those 2015 figures were the ages involved, 8,820 were between four and 10 years of age, while 2,173 were over 10 years old. So it’s fair to assume a majority were cows.

Leave aside arguments on free trade for a minute, and ask what exactly is going on?

Before we even discuss quality assurance etc; for a country that prides itself on its image as producer of ‘green’ quality food, the optics of this trade from an Irish beef producer’s perspective, look all wrong.