Prices back 3c/kg at factories

Marts: It has been a disappointing week for beef producers, during which the average price dropped 3 cent/kg (1p/lb), the largest decline in several weeks.

The turnaround in the trend has come at a time when producers were anticipating that strong markets for beef and tight supplies would deliver improved returns to compensate finishers for the higher production costs in 2008. Instead, processors cut into producer margins for last week’s kill, during which there was a slight reduction in supply — total intake down around 1,000 head at 28,321, and bullocks back to 12,725.

The pattern of decline was uniform across the grades. Exception to the trend was U grade bullock prices at Donegal Meats, where the average increased by 2c/kg to 356c/kg (127p/lb). The top price for U-grade heifers dropped 8c/kg to 352c/kg with Dawn (Midleton) paying the leading price.

The average paid for R4L bullocks dropped to 338c/kg (121p/lb) and R4L heifers were back to an average of 342c/kg (122p/lb). Prices for O4L bullocks fell to 328c/kg (117p/lb) and O3 heifers were back at an average of 330c/kg (118p/lb).

At the top of the market Donegal Meats paid 348c/kg (124p/lb) for R4L bullocks, a clear leader from AIBP (Nenagh) and Euro Foods at 342c/kg and Dunbia Newgrange paying 341c/kg.

Kepak (Clonee) paid 350c/kg (125p/lb) for R4L heifers, 1c/kg ahead of AIBP (Nenagh) and Ashbourne Meats with Charleville Foods and Donegal Meats paying an average of 348c/kg.

Between them, AIBP, Dawn and Kepak control half of the operating factories having a big influence on the market. AIBP and Kepak each paid a group average of 338c/kg (121p/lb) for R4L bullocks, with Dawn Group on an average of 336c/kg (120p/lb).

Cow prices peaked again. Ashbourne paid 313c/kg (112p/lb) for R’s, Donegal, Kildare, Liffeys, and Dunbia paying 302c/kg (108p/lb) for Os and Ps making 302c/kg at Liffeys.