Moving cattle the priority this week

THE supply of cattle to the factories was very strong this week, turning the trade into a buyers’ market, eroding any farmer resistance to price cuts which were made across the board for this week’s kill.

Heavy rainfall had reduced grass quality, and pushed farmers to lighten stock levels on the land.

This has taken precedent over price through the early days of this week, with very little, if any, resistance to a further cut of 3 cents/kg (1p/lb) in beef cattle prices this week.

Factories reported that their requirements for the week were booked-in early on Monday.

Some farmers were looking to book in their cattle as far forward as the early days of October.

Not surprisingly, factory procurement staff were describing as “crazy” the near frenzy by farmers to sell, regardless of price, as three factors - weather and ground conditions, falling prices and cattle going over 30 months - combined to create a “must sell” approach by farmers.

Needless to say, the factories were keeping their silence on quoting for cattle.

“There is no point in quoting, because we are full for the week”, said one spokesperson.

On the ground, the word was that most of the cattle were being bought at 255 and back to 243 cents/kg (91p-87p/lb) for R and O grades under 30 months which, on average, is 3 cents/kg (1p/lb) behind last week’s prices, and well under the target base price of 252 cents/kg (90p/lb) set by farmers during their protest in Athleague last month.

At this week’s meetings of beef producers (including tonight’s Auburn Lodge Hotel, Ennis meeting), IFA members will be calling on their leaders intervene in the free-fall of cattle prices, as export factory intake approaches the seasonal peak.

There has been a slight easing of factory prices for cull cows this week, with from 190 to 202 cents/kg (72p-68p/lb) believed to be on offer, revealing a remarkably narrow margin between cow beef and prime steer beef prices.