Factories down to only 9,000 steers
While demand for beef is not hectic, and is depressed by fine weather and holiday factors at consumer level, the weekly kill of steers has fallen to the lowest level in a long time, with just over 9,000 head going through the factories last week.
Factories requiring reasonable supplies of cattle to fill orders are finding it extremely difficult to source enough cattle these weeks, which is leaving cattle farmers in a position to bargain for a strong price before deciding to sell.
The best quote for the week was from Donegal Meats, at 286 cents/kg (102p/lb) for R3 steers, falling back to 277 cents/kg (97p/lb) for R4 grade, while 280 cents/kg (100p/lb) was quoted by Excel at Kilbeggan for R grade.
The other factories were mostly quoting 99p or 98p/lb for Rs. Quotes for O grades are ranging from 98p back to 96p/lb.
There is however a considerable number of flat price deals being negotiated for quality cattle, and in particular for larger numbers of mainly R grade animals.
While there has been a fall off in demand for beef, as is normal for the summer season and in particular when the weather is warm and households change their eating habits, the available supply is very tight, and demand is exceeding supply.
The throughput at the factories last week at 22,583 head was 7,000 head less than the corresponding week last year, and last week’s supply of steers at 9,008 head was down 5,000 on the same week in 2003, which tells its own story of the balance of supply and demand.
On the positive side, the lower supply has continued to deliver 14p to 16p/lb more for beef this month than similar cattle returned in June 2003, which is a sizeable gain. However, the high price for beef is having a big influence on the prices which store animals are making at the mart sales, and sellers of beef are finding they have to pass on most of the gain to the producers of stores when they buy replacements.
It is very hard to make any sense of current store prices, unless autumn beef prices are going to top the current trade, which would be a real turn around for the cards. Cull cow prices are remaining very firm, with up to 235 cent/kg (84p/lb) being quoted for good cows and more being paid by some of the factories.
