Quotes unchanged as Bord Bia predicts stable 2024 trade

With both last week and this week seeing factory working days reduced to four due to bank holidays, numbers processed over both weeks are expected to be considerably reduced.

However, as we all know, ‘expectation’ often turns out to be nothing more than a warm smile and a peck on the cheek.

Take the bank holiday week of March 18 as an example. Because of that Monday’s holiday, the factory kill fell back from 33,614 the previous week to 31,174 — however, when you divide that number into the four days, it actually works out that the average daily kill went up from 6,723 to 7,794.

OK, the overall number is still lower, but the factories were still able to get the numbers they wanted without having to pay more.

And that, I’m told, was the case last week and will possibly also be the situation this week. The reason why is simple. There are no more cattle in the system than before, but from speaking with agents, several factors are pushing some fatteners to sell extra numbers at this time.

The first is fodder scarcity and expense, the second is the fact that many slatted sheds are almost at their maximum in relation to slurry storage and, thirdly, for some April sees the start of a new tax year, meaning cattle held to keep their tax bill down for 2023 will now possibly be sold in short order.

What this meant for factory quotes yesterday was “no change” — bullocks continue on a general base price of €5.10-5.15/kg, with heifers on €5.15-5.20/kg. In both cases, factories continue to offer around 5c/kg more for bigger numbers, so they maintain those lesser quotes to the majority of sellers.

Secure culls

There was also no improvement in quotes for cull yesterday, despite reports that some plants were more active in their attempts to secure culls.

This leaves average O grading culls on prices of €4.20-4.30/ kg, with better types making up to €4.40/kg, while your better P grade Friesian is selling from €4.00-4.10/kg. Reports do also hint at continental Ps making from €4.25-4.35/kg when mixed in with good O grades at €4.40/kg.

The trade for bulls is no better or worse than anything else, with R grading stock under 24 months ranging from €5.20-5.30/ kg, while U grades are on €5.40/ kg and Friesian bulls are reported as being flat priced at €5.15/kg.

Comments from Bord Bia indicate that the beef trade should remain stable for much of the year.

“Prime cattle supplies have been firm for the first quarter of the year but have shown some contraction in recent weeks,” said a Bord Bia statement.

“Tighter prime cattle supplies are expected for much of 2024 with initial forecast indicating a 30,000 head decline in throughput.

“A stable live export trade for older categories of animals and a contraction in cattle numbers on the ground are expected to contribute to this decline.

“Some of the decline in prime cattle throughput may be offset by a much stronger cow kill if the trend from the first quarter of the year continues.

“There have also been reductions recorded in average carcase weights with a growing number of beef animals originating from the dairy herd in the kill, which is impacting total beef production.

“Irish deadweight beef price has stabilised in recent weeks and continue to track ahead of average EU prices and it is hoped that this can be maintained.

IFA National Livestock chair Declan Hanrahan said factories are very anxious for cattle and are offering deals up to 10c/kg above quotes.

“Beef markets are strong, supplies are tight and there is capacity in the market for further price increases,” he said.