Early 2003 born stock boost supply

THERE has been a turnaround in the supply situation for cattle to the factories this week, as a result of which the slight improvement in prices has stalled.

But the trade remains steady at unchanged prices, for the better quality cattle in particular.

There was a noticeable increase in the availability of cattle to the factories in all areas of the country this week and some of the factories have eased O grade prices back by 3 cents/kg (1p/lb), and further widened the price gap between R and O grades.

It has been more difficult to get 252 cents/kg (90p/lb) for R grade animals in the lower half of the country this week, but 249 cents/kg (89p/lb) is available.

The general run of prices being offered to producers has been 246 cents/kg (88p/lb) for R grade stock.

Move above the midlands and there is 90p/lb to be got, with up to 260 cents/kg (93p/lb) quoted for R3 in the north west of the country, while prices for R4 in the north west remain at 252 cents/kg (90p/lb).

Prices on offer for O grades have slipped a little, and are ranging from 85p back to 83p/lb, with a gap of up to 20 cents/kg (7p/lb) now opening up between R and O grade animals at some of the factories.

That can be penal for suppliers of the poorer grading animals, and beef animals coming from the dairying areas, which usually have more difficulty in getting into the better grading categories.

The increase in cattle supply this week has certainly put the brakes on further increases in prices at least for the moment, and given that there are not too many weeks left in the year, the end of year prices are very unlikely to reach anything close to some of the earlier predictions.

The increase in stock is not unexpected.

As we previously indicated, the release of January 2003 born animals from 21 month SBP retention was expected to result in more of these animals selling by the middle of this month, a pattern which is likely to continue over the coming weeks, as more of these early 2003 born animals complete retention and are slaughtered to take advantage of the e80/head Slaughter Premium, which ends on December 31.

There is a strong trade for cull cows, with up to 207 cents/kg (74p/lb) being quoted for the quality heavy cows. Pay sheet returns show that factory averages of up to 77p/lb has been paid in recent weeks for cull cows at Newgrange Meats, Navan and up to 75p/lb was paid at Kepak, Clonee.

The demand for cows remains strong, with Slaney Meats at Freshford, Kepak at Clonee and the sister factories Exel Meats at Kilbeggan and Newgrange Meats at Navan all paying strong prices for the good quality cows.