Prices hold firm for quality animals

Prices are holding firm for quality in the live trade for beef and stores in the marts, but producers are differentiating more widely on the basis of quality with prices for poorer graders slipping as the emphasis moves to quality in the post-premia era in 2005.

There is now a clear difference of €80-€150/head between the prices being paid for pre-June 1 born bull calves and those born after June 1 which have no premia entitlement, as the countdown to the changeover to the single payment on January 1 gets underway.

Farmers buying stores which will not finish until 2005 are beginning to show more consciousness of the increased emphasis which will be placed on quality for returns, rather than based on premia entitlements as heretofore.

The result is showing in a widening of the price range for stores as prices hold firm for the quality animals and finishers commence to do their calculations and discount the poorer quality animals unlikely to make a U grade or good R grade in the factories next year.

The effect is shown in the early weanling sales for animals which at most carry one premia and will sell on a market where quality will dictate the return to a greater extent than for more than a decade.

Athenry Mart manager Martin McNamara said: “a big difference is appearing between the quality lots and the poor quality stock.” There was a smaller entry at Athenry Mart yesterday, with the tops of the continental bulls making up to €440 over €/kg while poorer quality sold back to €175 over. A Friesian bull weighing 330 kgs selling at €475 and a Charolais bull scaling 330 kgs making €770 shows a €300/head difference in favour of quality and the poor prices which are beginning to emerge for the poorer grading Friesian.