Processors may have to hold prices

CATTLE farmers reacted angrily to lowering of prices by several processors this week.

The factories cut prices by 3 to 6 cents/kg (1p or 2p/lb), after three weeks of increasing cattle supply — and the announcement that the total ban on beef imports from Brazil was being lifted.

Although beef from 106 Brazilian farms allowed to export to the EU will have minimal overall effect on trade, and intake at factories here continues to fall short of 2007 levels, cattle farmers were warned by processors that the combination would affect the trade and, as a consequence, cattle prices were being cut.

Prices paid here for cattle last week were up to 11 cents/kg (4p/lb) above quoted prices, and many farmers are telling processors this week they won’t take a cent less to part with their cattle.

There was strong resistance to prices being dropped to a range of 327 back to 316 cents/kg (117p to 113p/lb) for R and O grade steers in the south, while some midland factories maintained quotes for these grades at 336 to 325 cents/kg (120 to 116p/lb) but were trying to deal close to these prices, rather than concede the big top-ups on quotes generally paid last week. Heifers were generally worth 3 to 6 cents/kg more than the bullocks at the lower end of the price range, but no premium was being offered at the upper price range.

IFA has strongly backed cattle farmer resistance to the downward price trend. IFA National Livestock Committee Chairman Michael Doran said cattle feeders are not prepared to sell stock at less than 342 cents/kg (122p/lb) for R and U grade steers, and 336 cents/kg (120p/lb) for R and O grade steers. He said 342 to 347 cents/kg (122p to 124p/lb) has been paid for bulls, and similar prices for heifers, and urged farmers not to panic into selling stock at reduced prices.

Processors are finding it very hard to get cattle for less than they paid last week, and they may settle for holding prices at current levels.

The kill last week increased to around 32,700 head — with steers rising to about 14,200 head — which is close to the 2007 level, after a considerable increase over the past three weeks.

Quotes have eased a little for cows, but the cow trade is still very strong. Up to 303 cents/kg (108p/lb) is attainable for heavy R grade continental cows, and 295 cents/kg (105p/lb) should be the target for O and P.