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.