Farmers urged to bargain hard as processors face cattle shortage

FINISHED cattle supplies are tightening fast and a significant lift in factory prices will be needed to secure stock, it has been claimed this week.

The IFA livestock chairman Angus Woods forecast that processors will be short of cattle within a fortnight and he urged farmers to bargain hard on prices.

“Procurement managers and agents are saying that, based on their usual supply lines, they don’t know where they are going to get finished cattle in 10 days to two weeks’ time and they expect prices will rise significantly,” Mr Woods said.

Last week factories quoted 405c/kg for steers and 415c/ kg for heifers, but Department of Agriculture figures show that the average price paid for bullocks was 412c/kg, and 426c/kg for heifers.

Mr Woods said cattle prices had increased 3-5c/kg in the last week. However, he said factories were in a position to raise prices further given that R3 steers in Britain are making the equivalent of €4.47/kg.

Mr Woods also insisted that a premium will have to be paid for finished cattle later this summer to cover the exorbitant feed costs farmers have incurred. A severe falloff in the number of cattle finished off grass is expected this summer as a result of the poor weather and late spring. Industry sources report that beef factories have sought to push back the finish date for contracted cattle as they look to avoid a collapse in supplies from late May to July.

“Factories are trying to contract cattle for the very scarce weeks of May, June and July. Feeders need to do their figures carefully as feed prices have risen rapidly in recent weeks,” Mr Woods said.

Contract prices for cattle finished in June or July would have to reflect the increased price of compound feed and fodder as grass supplies are likely to remain tight into late June or July, he maintained.