Beef prices continue to fall

Beef prices have continued the downward trend at the factories with further reductions as supplies exceeded demand at the processors yesterday.

Up to 6c/kg (2p/lb) has been cut off the prices on offer from the factories with R grade animals bearing the brunt of the reductions which are compounding the losses being borne by producers on spring finishing.

Most of the factories dropped the quoted price for R grade bullocks and heifers to 289c/kg (103p/lb) yesterday. Up to 292c/kg (104p/lb) was being paid by Kepak (Watergrasshill) and at Slaney Meats (Bunclody) for underage bullocks. Slaney was paying 294cs/kg (105p/lb) for underage heifers.

Factories in the Midlands — usually 3c-6cs/kg stronger than the South — are offering the same as the southern plants.

Prices for O grade stock ranged from 274c/kg (98p/lb) — which was the going rate at most of the factories — to 280c/kg (100p/lb) for underage bullocks at Slaney and 283c/kg (101p/lb) for underage heifers at Slaney.

Some regular suppliers of cattle to individual factories are negotiating a little over the quoted prices, but it has become more difficult to get a decent top-up, and producers are in a weak position to negotiate on price with the strength of cattle supply available to the processors this week.

The supply strength is adding to the pressure on return to producers, a pattern across the country, which led to some of the processors suspending bookings yesterday.

One procurement manager said “they are not booking-in a load of cattle but asking if we can take three or four loads” which is just as unusual for the second week of May as is the downward price trend.

Good demand for rumps and rounds is reported from Britain, where prices for forequarters has eased this week. On the Continent demand is picking up for ribs and steak, but the trade for the forequarters is very dull.