Producers still hold cattle trade aces

PRICES being paid for beef continue to top the officially quoted rates by up to 9 cent/kg (3p/lb), as producers continue a hard sell approach at the factories, although some weakening in the trade can be detected, as the supply of cattle increases.

Generally, the base line quote for beef has remained at 286 cent/kg (102p/lb), with a few factories having adjusted quoted prices downwards to 283 and back to 277 cent/kg (101p-99p/lb) for R4L grade. However, all factories are finding it impossible to buy cattle at these prices, and most producers are getting close to 291 cent/kg (104p/lb), and there is still a bit of 291 to 294 cent/kg (104p or 105p) being paid at the top end of the market, particularly for good quality cattle, or where the supply remains very tight.

The significant feature of the prices being paid is that the price variation between grades exists only in name, and aherence to the Meat Industry Ireland price grid is indiscernible in the pay sheets from the factories.

This pricing system was never accepted by producers, who currently hold the aces, in the form of under-supply of cattle, leaving them in a strong position to reject use of the price grid.

Some factories which had adhered closely to the grid pricing range have been jolted off track in recent weeks.

It would be folly however to think that the price grid has gone away.

It will certainly come back into play when supplies build up, and could inflict suffering on producers next autumn, when the factories will hold the aces.

Following on from the recent dip in supplies of cattle to the factories, partly due to shorter working weeks, numbers are now on the increase. The bullock kill last week was up 1,500 head, at 16,774 head, out of a total kill of 31,228 head, and supplies are holding up this week.

On the market side, the post-Easter trade is quiet. In Britain, the market was quieter over the past week, but prices are just holding.

France is reported to be relatively quiet, Italy slightly improved, the trade disappointing in the Netherlands and steady in Germany.

The trade for cull cows continues to be a flyer, with the best of the heavy R grade cows making up to 268 cent/kg (96p/lb) and a top of 252 cent/kg (90p/lb) being achieved for heavy O grade carcasses.

The high prices have brought out more cows in recent weeks, with supplies now on a par with the same weeks last year, although year to date throughput remains 13% down on 2004.