Calving pattern reflected in scarcity of younger cattle

OPERATIONS at the country’s beef factories returned to near normal this week, with prices continuing very firm and supplies on the tight side.

While most factories were anxious for cattle during the opening days, to replenish depleted stocks of beef, they didn’t need large supplies in the lull in the trade after Christmas.

The general price was 90p/lb for R grade, with a bit more being paid for quality stock, or where supplies were particularly tight.

But a margin of up to 5p/lb has opened up between R and O grades, as the latter was quoted back to 85p/lb this week at some of the factories. Prices for O grades ranged from 87p back to 85p/lb.

Under 30 months stock are scarce, which is in line with the calving pattern, and are likely to remain scarce for some time, which could be of benefit to sellers.

The slack demand for beef this week was matched by farmers not pushing to market cattle, with Christmas still very much in the air and producers not back to normal trading.

Some processors have been hinting that prices will come under pressure as soon as supplies increase.

Meanwhile, the acquisition by the Dawn Meats Group of Galtee Meats at Charleville has been completed, and trading under the new name of Charleville Foods got under way this week, adding to the spread and strength of the Dawn Group in the red meat business.

We wish them the best of luck with their acquisition.

The original deadline for the withdrawal of the Department of Agriculture from grading at the beef plants passed last week, with the status quo continuing, following the agreement of the Department to continue the grading operation for the first quarter of 2004, while final arrangements and assessments of mechanical grading are being completed.

There was very light activity in the marts for the opening days of this week, when the first of the sales resumed.

Prices were largely unchanged from pre-Christmas. The calf trade opened quite strong at Bandon on Monday with over 100 calves on offer and continental bulls selling for up to 410 per head.

A small entry of cattle at Kilmallock on Monday met with a firm trade.

Some marts are not reopening for at least a further week.