Beef prices remain firm at factories
The one significant change in the trade this week is that, as supplies continue to reduce, the factories have begun to ease the pressure on getting more of the scarce cattle by reducing the kill, which this week is back to between two and four days at some of the factories.
It is not unusual to have a reduction in the killing days at this time of the year, but the processors are so conscious of the cost of beef - as they see it - relative to market returns that they are anxious to cut back the requirement at the first opportunity, and once they have enough to fill their orders that is all they want.
The quoted prices reached 100p/lb this week with Donegal Meats offering 280 cents/kg for R3 (271 cents/kg for R4) and Slaney Meats at Bunclody and Exel Meats at Kilbeggan and sister plant, Newgrange Meats, Navan offering 274 cents/kg (98p/lb) for R grade.
Prices on offer for R grade now range 100p-96p/lb.
The higher prices are harder to achieve in the south where supplies of cattle are not as tight, but all of the processors are continuing to pay a little more than the quoted prices for cattle.
Prices on offer for O grade are ranging 97p-94p/lb. Throughput at the factories has now commenced to slip back, although it is still believed that many of the larger producers have been holding back cattle which are still to come out and should be filtering into the system over the coming weeks.
The total kill last week was 27,470 head. Bullocks accounted for 15,296, a drop of 1,200 on the previous week, but on par with the corresponding week last year.
The trade for beef in both Italy and France eased during the past week, while a low supply of Irish beef continued to trade well in Britain. The was very little change in the market in Germany.
The demand and the prices on offer for cows continues very strong.
It is not many months ago that bullocks were selling for the current price on offer for cows. This week they are being quoted at up to 235 cents/kg (84p/lb) for the quality heavy cows at Slaney Meats, Freshford. Prices are ranging 84p-80p/lb.
The throughput of cows at the factories continues fairly stable at over 5,000 head per week, which is similar to the same weeks in 2003 and there is plenty of competition between the factories for the available supplies.
