Lower return on strong supply

Marts: As supplies of cattle to the factories continues strong, prices paid for O grade animals have dropped by an average of almost 1.5p/lb, according to official factory returns issued yesterday, while the decline in R’s cut an average of 0.5p/lb off prices for the week.

The intake at factories at almost 29,500 head, is 5,000 head higher than 2004. Supplies of bullocks and heifers were a combined 3,000 head more than for the same week last year, which continues to weaken the hand of producers in resisting the move by processors for an early cut in price. Return for O grade animals is down by at least €20/head in two weeks.

The heavy cut in O grade prices has widened the margin between R4L and O4L grade animals to an average of 4p/lb for bullocks and 5p/lb for heifers after the average paid for O4L grade heifers fell below 100p/lb.

The average for R4L bullocks slipped to 104p/lb. Donegal Meats continued to lead the field at an average of 106.5p/lb, Euro Farm Foods and Kepak at Clonee paying an average of 105p/lb and Liffey Meats, Slaney Meats, AIBP (Nenagh and Cahir) coming in between 104.5p/lb and 104.8p/lb, with a number of factories buying supplies for averages between 102p/lb and 103p/lb.

The factories paid an average of 100p/lb for O4L bullocks - one in three factories paying less than the average - against a top price of 103p/lb at Jennings of Ballinrobe. A majority of the factories paid between 100p/lb and 101p/lb.

Average for R4L heifers was 104.3p/lb - more than half the factories paid 104p/lb or better - but the average for O4L heifers fell below 100p/lb after a drop of 4c/kg.

The recent heavy cut in quoted prices for cull cows has been reflected in the pay sheet returns. Top price for O grade cows dropped by almost 5p/lb to 82p/lb paid by Euro Farm Foods and Liffey Meats, while Kepak at Clonee paid a similar average for P+3 grade.