High supply keeps prices down

Beef prices were cut by an average of 1-3c/kg at the factories as the supply of cattle to the processing plants remained high at over 40,000 head slaughtered last week.

The strong supply of cattle — the fourth week in a row of strong intake — and a slight weakening in demand on export markets provided the platform for processors to cut returns to producers, a process further extended this week, dashing expectations on price for the pre-Christmas kill.

Save a few exceptions, the cut was effected across the factories, bringing the average paid for R4L bullocks to 104.7p/lb and R4L heifers to an average of 105.7p/lb. The average paid for O4L bullocks slipped to 101p/lb and the average for O3 heifers was slightly lower.

Although the supply of bullocks was back 1,600 head, intake remained a healthy 18,194 head. The supply of heifers was similar to the previous week at 10,580 head.

The highest for R4L bullocks at over 106p/lb was paid by Donegal Meats, followed by Euro Foods (Duleek) a shade under 106p/lb and Dunbia Newgrange (Navan) at an average of 105.4p/lb. Dawn (Waterford), Slaney (Bunclody), Kepak (Clonee), and Ashbourne (Roscrea) each paid an average of just over 105p/lb.

Jennings of Ballinrobe paid a strong 104p/lb for O4L bullocks, while Donegal, Euro and Newgrange were the only others over 102p/lb.

The trade for heifers continued to outstrip the bullocks. Kepak (Clonee) paid over 109p/lb average, Slaney and Dawn (Waterford) paying an average of 108p/lb, just ahead of Donegal, and the three AIBP plants at Nenagh, Bandon and Waterford.

Donegal Meats paid the highest price for cows at over 93p/lb for quality R’s. which was unchanged. The top price for O grade was improved by 2p/lb at 91p/lb paid by Donegal. Kepak (Clonee) paid the highest price for P grade at almost 86p/lb, which was back 2p/lb on the highest for the previous week.