Don’t hold older steers

SUPPLIES of under 30 months cattle are continuing to tighten this week, but there is no such problem for the factories in securing over 30 months animals, with some processors getting more of these than they would welcome.

The lack of younger cattle has led to factory prices recovering 1p-2p/lb this week. But the over-supply of “over-age” steers will certainly put a lot of pressure on the prices for these animals, because of the limited market outlets for them and worries that there are even more of them out there waiting to be sold. The south of the country is faring worst in this regard, with some factories hinting at reluctance to take “over-age” cattle, if they are more than a minor percentage of a bunch of cattle.

Given that the number of steers slaughtered year to date is down over 10%, it is reasonable to assume that there is still a lot of older steers on farms. It is therefore advisable for producers with animals coming up to 30 months to weigh the risk in holding them against a high risk of increased price penalties, if supplies increase sharply over the remaining weeks of the year.

For the young stock, 246 to 232 cents/kg (88p and back to 83p/lb) for R and O grades is generally available this week, an improvement of 3 cents/kg (1p/lb).

In the midlands, prices for O grade have lifted by a further 3 cents/kg (1p/lb) to 235 cents/kg (84p/lb) at Exel Meats, Kilbeggan and Newgrange Meats at Navan, where 246 to 235 cents/kg (88p to 84p/lb) is being quoted this week.

Other factories are maintaining a silence on quoting for cattle.

The supply of young animals is falling, in line with the spring calving pattern, as the last of the April born animals reach 30 months.

Births for May, 2002 were less than half of the total for March, 2002.