Beef prices fail to match 2004 levels
Bullock and heifer prices for R3 grade at the factories showed an increase of 10% for the first three months of the year, before slipping back to a current scale of 6% over the same time last year.
To mid-May R3 bullock prices at the processors were on average 9% higher than the same period last year and the average paid for R3 heifers was 9.4% higher than 2004. Prices paid for R3 bullocks have averaged 291c/kg (104p/lb) to mid-May compared to 267 cents/kg (95p/lb) over the same period last year.
Prices for R3 heifers have returned 292 cents/kg (104.4p/lb) against 267c /kg (95p/lb) to mid-May 2004.
While these are year to mid-May means the rise was strongest for January- March easing back to a current 6% over last year as prices for May failed to deliver the same ratio of increase for May 2004.
On the cost side for finishers, weanling prices have on average been maintained at 86% of 2004 prices despite the loss of premiums on all animals from January 1, 2005, following the change over to the single payment.
Beef breed weanling bulls are down 11% and dairy breed bulls are back 17% on last years prices.
In Britain, weanling prices have dropped 10% and they are down 5% in Spain. In Italy weanling prices are running at 7% higher than last year and they are 2% higher in France. There is a general expectation that prices in Ireland have yet to go through a period of settling post decoupling as farmers readjust to the new regime under the single payment.
Demand for young stores in 2005 has been strong, a trend partly contributed to by farmers stocking up in expectation of securing entitlements from the national reserve.
