Outlook looks better for sellers

BEEF prices at factories have continued to rise this week, as the market outlook turns favourable for cattle farmers.

Steer supplies are more than 5,000 head per week lower than at the same time last year, which has increased the pressure on factories to get sufficient supplies for markets which are steady or strengthening.

Supplies are tightening also in Britain.

This is attributed to some movement away from poultry meat due to the bird flu scare.

Supermarket chains are also turning against Brazilian beef, following the country’s outbreak of foot and mouth disease, which has sparked an EU ban on exports from three regions of the country.

The EU has banned imports of de-boned and matured bovine meat slaughtered in three Brazilian states on and after September 29.

The combination of factors has led to a strong trade for a reduced supply of cattle available to factories in Ireland, and prices are tending upwards.

There is a general quote of 252 cents/kg (90p/lb) for R grade animals at the factories, most of which quoted 241 cents/kg (86p/lb) for O grade.

But processors have been finding it difficult to buy cattle at the quoted prices.

There are fairly widespread reports of 6 to 9 cents/kg (2p or 3p/lb) more being paid in parts of the south and midlands.

Farmers selling beef cattle in the north west report up to 14 cents/kg (5p/lb) more being paid for good quality cattle.

Cattle supplies are strongest in the south this week, following heavy rain.

But supplies are tight in the east of the country and midlands.

The intake at factories has fallen more than 7,000 head per week compared to the same time last year.

The steer supply accounts for between 5,000 and 6,000 head of the fall-off.

This scale of decline was not indicated in supply projections for the second half of the year.

The trend is being attributed to farmers reacting to poor autumn price with earlier housing of more of their cattle than usual, which are being held back to target an expected stronger market later in the year or early in 2006.

Cull cow prices at the factories are holding or improved this week.

Some factories have quoted improvements of up to 6 cents/kg (2p/lb), bringing the base price to 212 cents/kg (76p/lb), but up to 232 cents/kg (83p/lb) can be got for quality heavy carcasses. There is a strong trade in France for cow hinds.