Cull trade hit hardest as prices ease
Some processors have maintained their prices for better quality cattle and cut prices for the poorer grading animals by 1p or 2p/lb, widening the price gap between R and O grades to 4p/lb, as the supply of cattle continues to edge upwards and the factories feel that the worst of their supply problems are now in the past.
Kepak at Watergrasshill, Slaney Meats, Bunclody and sister factories, Exel Meats at Kilbeggan and Newgrange Meats, Navan all quoted 98p/lb for R grade on Monday and were offering 94p/lb for O grade animals, with everyone signing the same tune, that prices have peaked for the year, after a record six month run which was unequalled since the early nineties.
There is however no rush of supplies to the factories, and there will be no immediate major change in the prices, but the factories are more likely to edge prices back very gradually and slowly over the coming weeks, as the supply continues to build up and the trade moves towards the autumn.
While up to 100p/lb was still being quoted for R3 bullocks at Donegal Meats this week - and 97p/lb for R4 - most of the processors across the south, in the east and midlands were quoting R grade bullocks at 98p/lb and marking down the O grade animals to 94p/lb.
There was a bit of resistance from farmers to the prices on Monday, but there was not much scope for shopping around on price and the supplies moved more easily, at or close to the quoted prices, as the week went on.
Overall supplies to the factories last week increased to 29,129 head, of which bullocks accounted for 13,691 head, showing a further slight increase on the previous week. The weekly intake is now coming close to parity with the corresponding weeks in 2003.
The biggest price change this week was for cull cows, with up to 4p/lb knocked off, to bring base prices back to a 70 to 72p/lb range. They have dropped as much as 14p/lb within a month and, like the bullocks, come to the end of a very strong run of cull cow prices for the year to date.
Weekly supplies of cull cows to the factories are down on last year, and overall supplies for the year to date are more than 8% less than for the same period in 2003.
