Prices coming under pressure

Marts: Beef prices came under pressure at the factories yesterday — the first sign of attempts by the processors to stall the upward trend of the year to date — with producers resisting cuts.

The supply of cattle increased by 800 head to around 32,700 last week with the intake of bullocks, at 14,200, coming within 500 head of the corresponding week in 2007.

The processors gave producers the impression of less pressure to source sufficient stock as they reduced official quotes for stock by up to 6c/kg (2p/lb) which was condemned by producers.

Slaney Meats and Dunbia Exel (Slane) dropped their quotes for R grade bullocks 6c/kg to 330c/kg (118p/lb), while Kepak (Watergrasshill) were weaker by 3c/kg (1p/lb) at 327c/kg (117p/lb).

Prices being offered for O grade animals were also reduced, with Slaney and Dunbia dropping to 319c/kg (114p/lb) and Kepak down at 316c/kg (113p/lb).

In the midlands and the north west demand remained firm for stock at 336-325c/kg (120p/lb-116p/lb) for R/O grades.

Heifer prices were 6c/kg (2p/lb) stronger than the bullocks at Slaney and at a premium of 3c/kg (1p/lb) at Kepak, with factories in the midlands offering the same for bullocks and heifers.

Very few animals are moving at the quoted prices as producers, conscious that 341-330c/kg (122p-118p/lb) was freely paid for quality stock last week, hold out against any reduction on last week’s buying price, leaving the factories with little prospect of pulling prices, while keeping intake up.

At best, the processors may succeed in stalling the upward trend — in the short term — but the odds are very much against a reduction in price unless there is a surge in supply.

Up to 307c/kg (109.5p/lb) has been paid for heavy R grade cows in recent weeks — P grades making up to 295c/kg (105.4p/lb) — and while there was a slightly easier tone yesterday the factories are still very anxious for cows.