Up to 230 cent/kg for O grade cows
Good demand for beef has also helped to boost prices, with processors coming under pressure to source enough cattle, forced to pay more to encourage farmers to sell.
The foot and mouth ban on exports from the UK has boosted demand, to replace around 1,300 tonnes of beef and veal per week on markets normally supplied by the UK, almost entirely in the EU.
Quoted prices have increased by 6 cents/kg (2p/lb) at most plants this week, where the norm has become 286 to 271 cents/kg (102p to 97p/lb) for R and O grades. These prices were being paid through the latter half of last week, and became the official quotes last Monday. In the midlands, an extra 3 cents/kg (1p/lb) is quoted for young bullocks. Factories sourcing under 24 months heifers quoted 292 to 283 cents/kg (104p to 101p/lb) for R and O grades.
An extra 3 to 5 cent/kg is being negotiated between farmers and processors for quality lots, or where supplies are very tight and the processor is under pressure to find sufficient cattle to fill orders.
The trade for cows at factories has also picked up well. Factories quoted up to 230 cents/kg (82p/lb) for O grade cows, and more is being secured in deals with factories anxious for supplies.
Although slaughtering resumed in Britain over a week ago, when the ban on movement of animals was lifted outside the relatively small restricted zone, exports from Britain will remain under ban at least until August 25. The EU Standing Committee on the Food Chain and Animal Health will further consider that ban on August 23.
Between January and May of this year, UK supplies of beef and veal to Ireland averaged over 360 tonnes per week, which was more than a quarter of total UK exports. The largest market for UK supplies was the Netherlands, averaging more than 400 tonnes per week. Smaller amounts were being sold to France, Germany and Italy.
