Mixed messages from the factories as quotes hover around €3.65/kg

AFTER making numerous phone calls to factory agents and those close to the trade, I was left with a load of conflicting information and opinions.

Several agents quoted bullocks at €3.65/kg, and while others agreed that €3.65/kg was on the table, they said numbers of finished stock in their areas appeared to have tightened.

The one thing that was clear was that demand from the processors continues strong, with one source telling me that a number of factories last week had worked Saturday.

Add reports that sellers of nicely finished better Friesian stock got flat prices of €3.503.60/kg in recent weeks, and it’s clear that demand has not slackened to any great extent.

So why have factory bosses tried their hand at €3.65/kg?

As always the issue appears to be numbers, not the fact that Kildare Chilling are temporarily out of the equation, although that doesn’t help. Nor does the possibility that kill numbers may be restricted if more stringent Covid protocols are introduced in plants.

In the last week of July, 35,245 cattle were slaughtered at exporting plants, up from 34,872 the previous week. The steer kill at 16,500 was up just short of a thousand, while the heifer kill at 9,346 was up 532.

Cull cow numbers fell 1,026 to 7,019, which helps explain why their prices were unchanged at €3.20/kg for Rs, €3.00-3.10 for Os and €2.90-3.00/kg for better Ps.

A quoted price is often only the beginning of the conversation and with cull cows holding– plus the good weather – I just don’t see any quote below €3.70/kg for bullocks and €3.75/kg for heifers cutting the mustard with experienced sellers.

Quotes for young bulls also appear to be unchanged, with U-grades continuing on €3.60-3.70/kg, Rs on €3.503.60/kg and Os 3.40-3.50/kg.

On the live export front, the total number of cattle exported for direct slaughter to the North last month fell from 3,570 in June to just 1,757 as improved factory prices in the Republic during July helped Southern agents outbid their Northern counterparts at marts.

However, Sean Brosnan of Gortatlea noted that after a lull, his Northern men were very active last week as they took the Southern competition out of significant numbers of factory types.

That 3,570 figure for June was equivalent to one factory

I just don’t see any quote below €3.70/kg for bullocks cutting the mustard with experienced sellers

killing 162 animals on each of the 22 working days of the month.

All this must go into the mix when factory bosses work out their long-term pricing strategy.

And part of that strategy must surely encompass ensuring those who fatten cattle remaining in the game, particularly those who winterfinish.

Of course, this year has been unlike any other. Many marts are reporting stronger than normal turnouts so would a falling factory price have the same impact on mart prices if numbers were less this back end?