Supply increase hurts beef prices
Quoted prices have been reduced by 3-9 cents/kg (1p-3p/lb), the heaviest cut being applied to the O grade animals as the factories intensify their efforts to get cheaper cattle.
They are being aided by a further rise in the supply over the past week when throughput exceeded 32,000 head of which steers accounted for almost 14,000 head, an increase of 2,000 head per week from three weeks ago.
Producers may be caught in a double wedge influencing the sale of animals, grass supply coming under pressure on farms due to the dry spell, and the incentive to sell ahead of seasonal downward price adjustments. However, the stronger supply of cattle has aided the reduction in price by the processors, which more orderly marketing would have held off for some more time.
Some southern factories are reported to have offered producers 291-285 cents/kg (104p-102p/lb) for R/O grade animals while advising it was unlikely they could kill the cattle this week because of heavy bookings. It has not been easy to get much over 297 cents/kg (106p/lb) for R’s in the south this week, while producers in the east and midlands are reported to have done deals for 300 cents/kg (107p/lb). Slaney Meats, Exel Meats and Newgrange were all quoting 297 cents/kg (106p/lb) this week. Suppliers report 108p/lb is being paid by Euro Foods at Duleek and at Donegal Meats.
Most of the factories in the south, the east and midlands were offering 102p/lb for O grade animals, while 105p/lb is reported to have been paid by some midland factories and also in the north west.
The downward pressure on prices contrasts with good demand for beef in Britain where trade is continuing steady and retail sales are up for the season. Cow prices also came under some pressure with quotes eased at most of the factories. Base line prices are ranging 246 cents/kg (88p/lb) for the heavy carcasses to 224 cents/kg (80p/lb).
Quality cows are continuing to make into the low and mid-90’s p/lb depending on demand. The supply of cows is also continuing very strong at over 8,000 head/week more than 1,000 up on the same week last year.
