Factory beef price increases slow

MARTS: The pace of increase in beef prices at the factories has slowed down, although the supply of finished cattle has dropped again, with intake well under that of a year ago.

Farmer pay sheet returns from the processors show the national average price paid for R4L bullocks and heifers improved by two cents/kg last week down from a gain of 6c/kg achieved the previous week. All of the major processing groups paid averages below the national figure, a first indication of stronger resistance to the higher cost of cattle which has been pushed by scarcity.

A national average of 91.5c/lb was paid for R4L bullocks, while R4L heifers averaged 92.3c/lb. Prices paid for O4L bullocks averaged 88c/lb with similar grade heifers slightly weaker at an average of 87.5c/lb.

Factory slaughterings for the week show that the increase in supply was short-lived. The supply of bullocks dropped 3,000 head to 16,884 - compared with over 21,000 the same week last year - and total throughput last week was back to 33,275 head, down 10,000 head on the same week in 2004.

The top price paid for R4L bullocks was just under 96c/lb at Donegal Meats which was almost identical to the previous week. Seven factories paid averages over 92.2c/lb or better - Donegal, Newgrange, AIBP at Clones, Dawn at Waterford, Duffys, Moyvalley and Liffeys - while the majority paid averages between 91c/lb and 92c/lb.

Trade was stronger at the top for R4L grade heifers with nine factories paying over 93c/lb. The top price for R grade cull cows was improved by 1c/lb to 83c/lb average at Euro Foods and O4H averaging 78.5c/lb at Exel was also 1c/lb stronger.