‘Factories have ‘major scope’ for raising cattle prices

“THE factories have major scope to immediately increase cattle prices,” according to IFA National Livestock Chairman Angus Woods.

He said the strengthening of sterling in recent weeks is worth an additional 14c/kg to the factories. He called on the meat plants to immediately pass this back by increasing the base price to finishers, who he said were on their knees financially.

He added some plants have paid a base of €3.90/kg for heifers this week.

Mr Woods pointed out that R3 grade steers were worth £3.56/kg in the UK for week ending Feb 16th.

“At the current exchange rate of 86p/€, this price is equivalent to €4.36/kg incl vat. At current Irish prices of €3.86/kg, the differential with the price in our main export market is 50c/kg or €180 per head.

“This price gap is way too wide and shows that the factories have real scope to increase cattle prices to finishers,” Mr Woods said.

He added that cattle supplies had finally begun to tighten with reports that some plants were actively looking for in-spec steers and heifers which meant they were prepared to pay above the current uneconomic base price.

Mr Woods said this tightening is beginning to be reflected in the latest kill figures for the week ending February 25, which show that the total kill was down below 36,000 head, when calves are excluded, for the first time since early January.

He said the steer kill is down 456 head on the week, the young bull kill is down 550 head and the cow kill is also back.

The IFA Livestock Leader said that beef finishers needed to dig in hard with the factories and the agents and demand a strong price increase on the back of the change to sterling and a tightening of supplies.