Wide variation in beef prices shown
The difference in price between the same grades varied by up to 300%, analysis of the prices paid by individual factories has confirmed. The findings show that there were winners and losers on the new grid system of payment, which did not operate uniformly across the country.
Meanwhile the average paid for R3 bullocks and heifers last week by the factories was unchanged from the previous week as the price fall bottomed out for the year with the reduction in supplies halting any further decline in return to producers.
The new pricing system, fixes the base price on R4/R4L grades, setting out clear differentials in the payment, plus and minus the base for conformation and fat scores above or below the base line. However the pay sheet returns show a low level of adherence to the system and huge variations between factories.
Under the new system the difference in price between R3 and O4H was set at 24 cent/kg. The price range varied between 8 cent/kg and 24 cent/kg at the individual factories.
The set difference in price between U3 and O4H grades is 36 cent/kg. The difference at the factories varied between 13 cent/kg and 40 cent/kg. In both examples examined the price difference was less than the set level in three quarters of the factories analysed.
The three major beef processing groups AIBP, Dawn and Kepak paid fractionally more for R3 bullocks, while the national average at 243.5 cent/kg (87p/lb), was unchanged. The overall average for O3 bullocks was marginally stronger at 231 cent/kg (82.6p/lb). R3 heifer prices averaged just under 246 cent/kg (88p/lb) and O3 averaged 229 cent/kg (82p/lb).
Exel Meats at Kilbeggan paid an average of over 74p/lb for R5 cows.
