Prices harden on tighter supplies
Producers up country were in a position to bargain for 86p/lb for R grade cattle yesterday as the supply of finished cattle tightened leading to processors having more difficulty in getting their requirements. The increase has not been passed on at the same ratio to the poorer grading animals which are still lingering around 80p/lb, except where the majority of a load are in the upper grade and a flat price is agreed.
In the south the effect on supply was less obvious. Some processors were finding the situation “a little tighter” while others confirmed that there was plenty of cattle on offer from dairy/beef farms where retention expired for the 21 month premia they were being moved out in larger numbers.
Across the south all factories were quoting similar to last week for the young cattle at 84p-80p/lb for R/O grades. The trickle of over 30 months cattle is so light that it is scarcely getting noticed now. Quality heavy lots are worth more than the young cattle for the Heinz contract at Galtee Meats. At Fair Oak, Clonmel and Bagenalstown there is no difference from the young cattle for R grade but they are penalising 6 cents/kg (2p/lb) for O grade over 30 months.
The total kill at the factories last week was up almost 5,000 head at 33,234 head of which the bullocks accounted for 18,455 head, an increase of 1,700 head on the previous week. Both the bullock kill and the overall are up on the same week in 2002.
The trade for cows is remaining very constant at a firm price of up to 67p/lb.
