Quotes drop as ‘numbers keep coming’
Factory quotes for bullocks and heifers remained largely steady at €5.10-5.15/kg and €5.15-5.20/ kg respectively last week.
However, those getting the higher end of those prices this week are understood to be sellers who booked in stock a week to 10 days ago, which effectively means that base quotes for this week are back 5c/kg to €5.10/ kg for bullocks and 5.15/kg for heifers.
Whether the eventual prices will be paid will be above this remains to be seen.
When challenged on this cut to quotes, factory agents up and down the country were unanimous: “The numbers keep coming and the factories are cutting their cloth to suit the numbers.”
Department data shows that the overall kill at exporting plants to February 4 was up 4pc on the sameperiodforlastyearat173,635 versus 167,267. The total kill for the week of the 4th was 37,261, including 10,070 cull cows (27pc), up 674 on the previous week.
With their numbers strong, factories have also pulled quotes for culls with reports indicating that Friesian O and P grades will this week be up to 10c/kg less at €4.10-3.90/kg respectively.
The figures on our price table give a broader range for O and P grade culls, because the higher figures cover continental culls.
As always when pricing cull cows factories will not be slow to discount poorer types or those with less flesh or a poor fat score.
The one area that does not yet appear to be affected by the reduction in quotes is the young bull, with those up to 24 months trading last week from €5.405.45/kg for U grades and €5.305.35/kg for Rs.
Quotes for bulls under 16 months for this week also appear steady at €5.20-5.25/kg for R grades, R grading Friesian types continue to find it difficult to get these figures, with factories holding firm at €5.00/kg.
Everyone has an angle when it comes to the trade. One farmer I spoke with had no problem with the reduction in factory prices, having sold his beef a few weeks back.
He is hoping that the current reduction in quotes might filter back to marts and steady prices there. With grass coming? Doubtful.
Bord Bia’s review of 2023 kill figures shows a continuing decline in the weight and conformation quality of the national herd. They cite “lower carcass weights due to impact of higher input costs and younger finishing ages” as well as “growing dairy influence on prime cattle figures”.
The average carcass weight of steers dropped 4kg in 2023 to 346kg, with heifers down 5kg at to 308kg.
Young bulls fell 10kg to 367kg and cull cow carcases declined by 8kg to 295kg.
Negative
However, older bulls were up 8kg to 445kg. However, I suspect that this may well be a negative long term, as that weight increase may be in part due to a decline in suckler numbers, with a resulting increase in slaughterings among continental breeding bulls.
Bord Bia’s data also shows that the percentage of O and P grade steers and heifers continues to grow as quality numbers fall, with those lesser grades accounting for 60% of their overall number to the end of November last year.
Also, 65pc of cows graded P in the first 11 months of 2024 — the highest ever recorded.
Fat scores have also been going in the wrong direction over the last few years, with 29pc of steers now falling into the fat score two category, up 8pc since 2021.
With Bord Bia figures showing the value of beef exports to the UK up 10pc to €1.3bn in 2023 and accounting for 47pc of all beef exported, the question remains why cannot we close the gap between prices here and Britain.
As of January 10, R3 steers across the water averaged €5.91/ kg compared to €5.25/kg here, making that 346kg steer carcass worth €228 more in Britain.