Control of beef trade returns to producers as prices recover
The necessity for the factories to get supplies flowing more freely again — bullocks dropped 6,000 head in one week — has produced further improvement in the prices on offer to suppliers this week with gains of 3-6 cents/kg (1p-2p/lb) added to the improvements conceded last week.
There is no reason for any supplier to sell R grade animals this week for less than 292 cents/kg (104p/lb) plus and the amount of the plus over that base is dependent on location of the processors and the necessity to get the cattle. Generally the prices are lower in the south of the country, improving as they move up country and peaking in the north-west (as usual) with reports of a bit of 108p/lb being secured at Donegal Meats for top quality cattle this week. That is 3 cents/kg (1p/lb) above the general going rate for R’s at the factory. Drawing a line the length of the country it is gradually downwards for the prices.
There was a fair share of the cattle around the midlands bought at 106p/lb for R’s — most quoting 105p/lb — and in the east prices ranged 105-106p/lb. The price is being driven by the demand for cattle at the factories, generally tight supply, and some deficit in the stocks of beef following the nose-dive in throughput. Prices for O grade are generally ranging 280-289 cents/kg (100p-103p/lb), but in a tight situation there is a lot of bargaining with the factories where most of the cattle in a lot are of superior grade.
The decision by the factories to reduce prices was a miscalculation by the processors and edging towards the busy Christmas trade all indicators are pointing positively. The improvement in the trade in the UK is continuing, with prices showing slight gains, but trade on the continent remains firm but not exciting.
The trade for cows is firm to improving. The base price for O grade cows is being quoted at up to 88p/lb and a bit more being paid at the top factories for heavy cows. The quality R grade cows have moved up the price league again with 95p/lb plus achievable and some of the top factories edging prices closer to 100p/lb. Demand for cows at the factories has picked up and that is not only a good sign for the cow trade but also a yardstick for trend in the general beef trade.
