Over-age supply pressurises prices

WHILE supplies of young stock continued to tighten, there was more over-age animals on offer to the factories this week, which is threatening to put pressure on price for the older animals if supplies continue to build.

Prices for the younger stock were maintained or slightly improved this week, but the bigger issue for many suppliers became the on/off situation for slaughtering at the factories during the opening days of the week. No sooner had agreement been reached between the Department of Agriculture and the vets on arrangements for the remainder of the year, than a new issue arose over the transfer of responsibility to the factories for rostering of the vets, which was previously decided by the Department. A number of the factories did not slaughter on Monday or Tuesday while efforts continue to resolve the issue surrounding an unusual situation in which the vets (TVI’s) are paid by the Department of Agriculture, but rostered by the factories who point out that they are not the employers of the vets.

Back at the factories the quoted prices for under age cattle this week as in general 238-227 cents/kg (85p-81p/lb) which was an improvement of 3 cents/kg (1p/lb) at some of the factories and maintaining last weeks prices at the others. Some individual deals are being negotiated with the factories for up to 241 cents/kg (86p/lb) for choice lot of young stock.