Weak export markets hit prices

Marts: Weaker markets for beef on the Continent, led to further downward pressure on prices at the factories yesterday, where the supply of cattle continues to exceed demand.

Producers suffered further losses as prices were reduced by up to 3c/kg (1p/lb) by a number of the processors as beef became more difficult to sell and prices eased on markets in Britain, Italy, France, Germany and the Netherlands over the past days.

Up to 289c/kg (103p/lb) was quoted for R grade animals — and a little more being paid — generally yesterday but some of the factories reduced the quotes to 286c/kg (102p/lb) and others advised suppliers that yesterday’s rates would not be guaranteed for the week.

Up to 274c/kg (98p/lb) was on offer for O grade stock in the south yesterday morning, but generally the prices remained under pressure through the day and by afternoon some of the Midland processors were offering 269c/kg (96p/lb).

Contrast these prices with this week last year when R grade animals were bought by the factories at 308c/kg (110p/lb) and Os made 302c/kg (108p/lb) — a drop in price to producers averaging over €100/head — and the impact of the downturn is demolishing any confidence in beef production.

On the export markets, beef prices to producers in Britain have dropped by the equivalent of 6c/kg (2p/lb). Prices in France have eased at consumer level, and in Italy demand is strongest for fillets and ribs, while continuing to fall for forequarter cuts.

Poorer weather in Germany has contributed to a decline in demand and forequarter cuts have become difficult to sell with overall demand low.

In the Netherlands the market is sluggish, demand for forequarter beef is in decline, but there has been an improvement in demand for hindquarter and sirloin.

Cow prices have eased by 6c/kg (2p/lb). Base prices range 229-249c/kg (82p-89p/lb) depending on the requirements at the individual factories.