Supply keeps beef prices steady

IT has been another week of steady trade for beef at the factories with the balance of supply to demand ensuring that prices in general have been maintained at last week’s level.

Resistance by producers to accepting any cut in the prices on offer at the factories, together with the tight balance between supply and demand, has ensured the base is maintained on cattle prices, with the trade going through a very stable period. Most of the factories are paying up to 294 cents/kg (105p/lb) in the upper region of the country, while prices in some areas of the south are at least 3 cents/kg (1p/lb) less on average at individual factories where supplies of cattle are more plentiful.

The weekly kill is now around on par with the corresponding weeks last year - and holding steady at that level in recent weeks - while for the year to date there is a substantial deficit on the same period in 2004. Figures for the first quarter show that cattle supplies to the factories declined by 70,000 head, with the supply of bullocks down by 36,000 head and heifers back by 25,000 head.

The intake of cull cows was down by 12,000 head while the supply of young bulls showed an increase. Given that there was a carry over of stock from the final quarter of last year into 2005, and the kill to date at the factories, the assumption that the stock levels on farms is higher than last year is reasonable, but opinion is divided as to whether the higher numbers are made up of cattle likely to go on to the grass for a few months or finished cattle for sale over the next month.

In the marts calf prices were back at some of the sales this week, while others reported a stronger trade at improved prices. There were fewer farmers in attendance at Bandon on Monday where the 950 calves on offer met a quieter trade.

At Kilmallock Mart on Monday there was a firmer calf trade with prices improved by €20-€30/head. Prices for plain stores eased a little at some of the sales over the past week, but the quality animals continued to make very strong prices ranging €350-€500 over e/kg for the medium weight continental bullocks which are making at least as much as this time last year and in some cases a bit more.

The continental store heifers are making €200-€360 over €/kg. At Dungarvan Mart on Monday there was an improved trade for all types of cattle with numbers on offers beginning to ease off, while Kilmallock had a bigger sale of cattle with a firm trade all round.