Bite is back in the trade
Steers Heifers Cull Cows Young Bulls AFTER six weeks of downward pressure on factory base prices — two weeks ago it was €3.75/kg for bullocks — last week brought stability. Bullocks generally settled on €3.80/kg with heifers on €3.90/kg.
Some plants still trying to quote that €3.75/kg came in for criticism.
We have got to the time of year when the number of issues that could potentially impact on supplies and factory price always seems to multiply.
The first and most important of these is the weather.
“That rain is singing in the factories ear,” was the verdict yesterday from one farmer in the west.
Yet an agent in the south commented that numbers of cattle coming off of grass “are disappearing” as high factory kills move upwards.
There are also stories emerging of finishers taking cattle off of the land due to the conditions and beginning indoor feeding a month early, which adds to disappearing numbers.
No factory is putting off stock. Indeed I’ve had reports of agents ringing farmers with just one question: “Have you cattle fit?” Their bosses are trying to get an accurate guide on actual numbers.
All of these factors help explain why the IFA’s Angus Woods said that some factories last week paid a steer base price of €3.88/kg and a €3.95/kg base for heifers.
Mr Woods said these prices reflect “the extra bite in the trade and tighter availability of stock, especially in the south, east and north east of the country.”
In addition, the IFA point out that EU beef prices are running at 20c to 30c/ kg above last year’s levels while our prices are now at or slightly below last year’s levels.
Meat Industry Ireland point out Irish cattle prices are 107pc of the EU average so far this year and were similar to last year’s levels despite sterling standing at around 92p against the euro compared with 85p this time last year.
The cull cow, the bottom rung of the factory beef ladder, remains stable again this week. There are hints coming that factories with specialist contracts are maybe five or more cents stronger than some of their opposition.
R grade cows are on €3.45-3.50/kg with Os at 3.30-3.40/kg and better Ps €3.20-3.30/kg.
Bulls under 16 months are on an R grade base of €3.85/ kg while bulls between 16 and 24 months at U grades are at €3.95/kg. It’s €3.703.75/kg for Os with Rs on €3.85/kg.
Whether you believe there is potential for an increase in prices or not, my friend in the west is right. Rain does “sing in factory bosses ears” at this time of the year.