Battle for stronger beef price gets under way
While the outcome for the week on cattle supplies still has two days kill togo to determine if the throughput at the factories has dropped, the warningshots are being fired by the producers against a continuation of the downward trend in prices.
Falling beef prices for four weeks in succession, which has knocked 40-50/head off finished cattle has been enough to cause concern by producers on the possibility of worse to come, and their message at last night's IFA-convened meeting in Co Laois was enough is enough as they demanded a base of 252 cents/kg (90p/lb) for the Autumn.
That is 11 cents/kg (4p/lb) more than the quoted rates for R grade cattle this week.
Supplies to the factories have been very strong over the past fortnight.
Week ending July 6 the kill was up 3,000 head on the corresponding week in 2001 at 28,234 head compared to 25,307 head last year. Last week's kill at 30,000 head was approximately 20% higher than the same week last year.
Any fall off in the supply this week could have more to do with farmers being more occupied with silage and hay making and the improvement in the weather reducing pressure to lighten stocking on farms, than influenced by any deliberate decision to hold back on cattle.
Trying to balance the trade for the Autumn is like juggling a poor hand in poker. There is going to be bluff called on both sides between producers and processors.
However, the outcome of the meeting at Abbeyleix, which had just got under way as we went to press last night, is important for straight talking between producers and processors on the prospects for the Autumn.
