Price grid delivers 298 cent for U3
The factories have met producers’ demand for a base price of 280 cents/kg (100p/lb) for R4L stock. But there are widely differing views among producers on how well the new Irish Meat Association price grid is setting prices for other grades.
Factories are clearly not happy at being forced to boost prices 10 cents/kg (over 3p/lb) to get in livestock, after most farmers refused to sell at last week’s prices.
The price grid scale, from a base of 280 cents/kg, should deliver 298 cents/kg (more than 106p/lb) for U3 animals, falling back to 268 cents/kg (under 96p/lb) for O3 stock. Some factories insisted this week that, following the increase in prices, the grid scale would be strictly applied for all grades. But the grid was introduced without consultation with farmer representatives and has not received the support of all farmers, and a number of factories have not endorsed the grid system.
With supply continuing very light, factories are finding it harder to buy according to the price grid. Some producers claim to have secured flat prices of 280 cents/kg (100p/lb) this week for mainly R grade animals. Farmer trust in mechanical grading must still be established, with many farmers having reservations, fearing that a slight grading adjustment, and the price grid, could together cost them dearly.
The kill at factories last week totalled 17,017 head, about 50% of the throughput for the same week in 2004. Last week’s supply of bullocks was 7,033, also around half that of the corresponding week last year.
A considerably increased supply is expected this week, after the lift in price, but if supplies continue to increase, further price improvements will be harder to secure.
Pig prices are unchanged this week, according to IFA, from €1.26 to €1.30, with a 6c/kg bonus for welfare pigs.
