No recovery in beef prices by year end
There was a very slight improvement in average prices paid by the factories last week but the wide variation between the factories was almost similar to the previous week.
The difference between the price paid for R3 and O4H grades ranged from 11 cents/kg to 29 cents/kg with the majority of the factories failing to achieve the 24 cents/kg between these grades set out under the new price grid formulated by the IMA, further confirming producer resistance.
There is increasing doubt now about the ability of the new price system to survive for long into 2005. The new price grid was introduced without consultation with farmer representatives (not “with consultation” which appeared yesterday due to typographical omission). The absence of producer agreement on the structure is now likely to be the downfall of the planned change in pricing.
Farmer pay-sheet returns show that there was a marginal improvement in the average paid for cattle at the factories last week.
AIBP and Dawn Groups paid an average of around 2 cent/kg more (0.5p/lb) for R3 bullocks which was slightly ahead of the national average which returned an average of 1 cent/kg more than the previous week.
The national average for R3 bullocks was just over 244 cent/kg (87p/lb) and O3 grade bullocks averaged 236 cent/kg (84p/lb) both in line with the quoted prices for the week.
Prices paid for R3 heifers were slightly stronger at a national average of 246 cent/kg (88p/lb) and for O3 heifers at 231 cent/kg (82p/lb).
