Prices driven up by online bidding wars and factory demand
The access anomaly at opposite ends of the food chain continues. At one end farmers are restricted to sitting in their cars in mart yards or at home awaiting confirmation that the batch of cattle they want to buy or sell are about to enter the mart sales ring.
And at the other end of the food chain shoppers can enter any supermarket once they disinfect their hands and wear a face-mask.
I really cannot fathom it. From yesterday the building trade began a phased return to normality — granted under strict social distancing rules — yet the marts remain ‘locked out’.
Neilius McAuliffe of Dingle Mart put it well: “What’s the difference between having lads locked in their cars in the yard looking at their phones if they’re buying online or just waiting for a call to see if their tendered bid was successful, and having those same men 30 feet apart but actually inside the mart proper?”
Lost ground
The trade itself, however, has not stood still. The number of marts going online in the hope of recovering lost ground continues to grow.
Stephen Hannon of Mohill Mart in Leitrim described the experience of seeing his mart online at the weekend as “the dawn of a new era” as more bids came in from far further afield than he had ever expected.
The bidding war is definitely on when it comes to what stock were previously making under the tendering system.
Part of what is helping the trade, whether online or not, has been the increase in factory demand and a corresponding rise in factory prices.
Stephen said trade was “improved to sharp”, with beef up by 20c/kg. “Beef heifers which were averaging €2/kg are now making €2.20/kg, and a share of these were nonquality-assured,” he told me.
He’s not the only one seeing the effect of better factory prices on the heavy mart trade. Jim Bushe of New Ross reported non-quality-assured 800kg Charolais bullocks as making over €2.16/kg.
New Ross Mart will once again host the weighing of heavy cattle destined for Algeria this week.
Jim was one of a number of mart managers to note that since live shipping resumed, the general interest in heavy cattle among factory agents at marts has intensified.
Another major beneficiary of those improving factory prices at marts last week were factory-fit cows, with their prices improved by up to €50/hd in places as your quality, well-fleshed cow once again headed north of €2/kg.
All marts report continuing strong interest and in some cases exceptional prices in those animals from 300-500kg.
George Candler of Kilkenny averaged bullocks under 500kg at €1.60-2.65/kg, with those of 500600kg making up to €2.40/kg.
In Dingle good weanling bulls averaged from €2.50-2.70/kg, with Belgian Blues and Limousins pushing onto €2.90/kg, while yearling Hereford and Angus bullocks sold from €2.00-2.20/kg.
As mart prices for beef and continental stores continue to rise, the Friesian bullock, the backbone of many a grazing enterprise, also moved up a few gears last week.
While some lesser lighter types continue to trade at €1.30-1.50/kg, the better, more forward animal is now hovering around the €1.701.90/kg mark.
While improving mart prices are as one man put it to me “taking the store man out of a hole”, John Osbourne of Kilcullen suspects that the trade may be about to stabilise.
“The mad rush appears to be easing,” he told me, and he could be right.
The prolonged dry spell and recent spate of night frosts have now created a grass shortage on some beef farms.
On the move:
clockwise from left, all at Tullow Mart: four 505kg Limousin cross bullocks, born June 2018, sold for €1,260 apiece; two February 2018-born Simmental cross bullocks, weighing 638kg, made €1,370 apiece; a 685kg Hereford cross cow, born September 2012, sold for €1,030; an April 2011-born Charolais cross cow, weighing 660kg, made €1,050
‘What’s the difference between having lads locked in their cars in the yard looking at their phones, and having those same men 30 feet apart but actually inside the mart proper?’