Heifers breach 90p/lb benchmark

Marts: Factory prices for O grade heifers have breached the 90p/lb benchmark , the trigger point at which producer reaction is likely to be sparked, resisting the latest cut in price.

Six factories paid averages marginally under 90p/lb for O3 grade heifers for last week, official farmer paysheet returns compiled by the Department of Agriculture have confirmed, after the overall national average for O3 heifers fell to 90p/lb for the week. One factory fractionally breached the 90p/lb mark for O3 bullocks after paying an average of 89.7p/lb average for the week, against an overall national average of 91p/lb.

While most factories paid the quoted rates - or slightly better - for cattle last week, the first hint of a breaching of the benchmark of 90p/lb is certain to ignite strong producer reaction against further reductions in price.