Prices stay stalled in factories gridlock

Steers Heifers Cull Cows Young Bulls FACTORY prices continue to remain at a standstill this week, pretty much like the traffic around the Dawn plant in Ballyhaunis yesterday morning.

That backlog was due to the actions of the ICSA’s flying column of beef blockaders led by Edmond Graham. For the second successive week ICSA succeeded in stopping all traffic into and out of a beef plant.

Whether their actions will yield results remains to be seen.

For the present, however, it is as you were, so to speak. Base prices for bullocks continue in general to be no better than €3.75/kg, with some plants still quoting as low as €3.70/kg.

On a more positive note, the word on the ground is that those with numbers of underage stock available are in a stronger position, with 5-10c/kg of a bonus reported as being possible.

Base prices for heifers this week also remain unchanged for the third week at €3.803.85/kg, with more reported as being possible.

IFA president Joe Healy claimed cattle prices are rising, with some farmers securing a base price of €3.80/kg for steers and €3.90/kg for heifers in recent days.

“With the strength of the UK cattle price and significant positive moves on the sterling exchange rate, it’s clear the factories could pay a lot more,” he said. “I am calling on the factories to immediately increase prices by another 10c/kg.”

The spin from factory agents is that the trade is “steady”, with good demand soaking up the numbers.

The situation is similar in the bull and cull cow trade. While stronger prices are rumoured, the reality is that prices yesterday morning were in effect no better or worse than they were a week ago.

All of which means your heavy under-24-month bull was topping out around €3.853.95/kg for U grades, with R grades on €3.75-3.80/kg, while O grades continue at €3.603.70/kg.

On the cow front that 5-10c/ kg increase that worked its way into prices last week appears to have held. Yesterday agents were continuing to quote €3.30-3.40/kg for R grades, with O grades holding on €3.15-3.10/kg, while your better P+ cow was sitting on €2.90-3.00/kg.

Bord Bia published a document in June entitled, ‘Bord Bia’s Brexit Barometer, recommendations and Brexit plan template’. In the section entitled Reducing Business Costs, I found the following: “Review payment cycle to identify areas of improvement, eg accelerate or delay customer and supplier payment terms.”

I can’t see any company accelerating payments due to Brexit. However, I find it very worrying that an agency in part funded by farmers appears to be recommending a slowdown in supplier payments post-Brexit.

And now a word from my local publican on getting your message across. Speaking of reports concerning poor factory prices and various protests, he said: “Then I hear on the local radio that mart prices are hitting records in some places.”

He left the sentence hang for a bit before continuing

“You know Martin ye farmers can’t have it all.”