Supply of cattle to factories strong

Marts: The supply of cattle to the factories was slightly stronger, but the producers were strongly resisting any attempts by the processors to use this measure as a means of bringing about a weakening in prices on offer yesterday.

The second of three short working weeks for the factories, coupled with more cattle on the move appeared to be the right mix for the processors to take the shine off the trade. There was some weakening on the prices in the south of the country where bookings were strongest, but moving east, across the midlands or into the north west it was proving difficult for the factories to buy cheaper cattle.

Quoted prices are unchanged at a base line of 286 cent/kg (102p/lb) for R4L.

In reality, most of the cattle slaughtered yesterday were costing between 292 cent/kg and 294 cent/kg (104p-105p/lb) for R’s, depending on the quality, but the producers were finding it increasingly difficult to get over 294 cent/kg as the supply of cattle rose.

Some procurement managers were expressing surprise at producer expectations on price which was making it difficult to buy, but they appeared to be more satisfied to leave cattle behind them yesterday than in recent weeks.

“The difficulty is that some farmers don’t appear to know what they want. I had one farmer expecting to get 110-111p/lb because cattle made up to 107p/lb in recent weeks. I told him I was not interested and wished him the best of luck,” commented one factory buyer.

The trade for cull cows is continuing very strong. The quality heavy cows are making up to 263 cent/kg (94p/lb) with strong competition between factories for the heavy carcasses with the newcomers to the trade in Co Meath, Euro Farm Foods at Duleek actively setting the trend.