Producers losing price battle

PRODUCERS are beginning to lose the battle with the factories on beef prices, with a majority of the processing centres reducing prices for R4L bullocks by up to 1p/lb or implementing a freeze on prices at previous level.

With a further slight increase in bullocks, price improvements were limited to one-in-four of the factories conceding marginal increases for bullocks and quality heifers. All three major processing groups paid less for bullocks, with individual southern-based factories within each group buying R4L-grade at 108p/lb.

Munster-based producers selling locally are forfeiting up to 3p/lb against the 111p/lb paid by Newgrange Meats, Donegal Meats and Euro Foods for similar grade stock, while similar weight/grade bullocks were worth €25/head more at AIBP’s Nenagh plant than the group’s Cahir factory last week. The Nenagh plant was also a leader on price for U-grade heifers at an average of 115p/lb for U2.

Farmer pay sheet returns for last week confirmed that the factories have now turned the tide on the four-month price spiral, and are beginning to win the battle against producers to get prices back as the larger finishers turn out stock.

Less than half the factories paid an average of 110p/lb or better for R4L bullocks, with some southern factories buying for an average of 108p/lb or a fraction more. The average for O4L bullocks dropped below 108p/lb.

An average of 110p/lb was paid for R4L heifers. Kepak (Clonee), at 112.6p/lb, was slightly stronger than Donegal, with Kepak (Watergrasshill) and Euro Food (Duleek) at 111p/lb. The average for O3 heifers was 107p/lb — down 1p/lb on the previous week.

The top price for cows was 1p/lb lower at 101p/lb for Rs at Exel Meats. The best price for O-grade was 1p/lb higher at 100p/lb paid by Duffys (Gort), and the highest for P-grade was unchanged at 97p/lb at Liffey Meats. Cow intake had the largest increase at 800 head more.