Prices rise as less than 11,800 steers processed

THERE is more optimism among cattle farmers this week that prices will recover from a recent downturn, as the cattle supply tightens up.

Intake at beef factories has dropped for the third consecutive week, signalling that the supply of finished cattle left in yards is running down, after a spring season during which the supply of steers dropped more than 14% below the same period in 2007.

Farmers who were angry at the processors’ recent cuts in cattle prices, which they described as “totally unjustified”, have this week intensified their demands for higher prices, in the light of dwindling supply.

Last week’s kill of about 27,000 head was down 1,000 head from last year, almost all due to the decline in the number of steers, which fell below 11,800 head.

The absence of Kildare Chilling this week due to fire damage left the market a bit more manageable for other processors, but the latest information from Kildare Chilling is that their factory will definitely be back in business, with slaughtering expected to recommence within days. Most of the fire damage was caused to the boning hall, and it is understood that alternative boning arrangements are being sought by the firm.

All processors quoted similar prices to last week for cattle, but were generally coming under pressure to pay at least 3 cents/kg (1p/lb) extra to get cattle this week.

While some R grade steers are understood to have been purchased at close to 336 cents/kg (120p/lb) in the south, most farmers were holding out for more.

The trade was a share firmer in the east and midlands, where 339 to 342 cents/kg (121 or 122p/lb) was the going rate, and prices were in turn a little stronger in the north west.

Upwards from a base of 325 cents/kg (116p/lb) is offered for O grade steers, with better price deals for mostly R grade mixes.

In general, 6 to 9 cent/kg (2 or 3p/lb) more can be got for heifers, with farmers targeting 347 to 350 cents/kg (124p or 125p/lb) for Rs, and pro rata for Os.

Cow prices were not affected by recent pressure on prime beef prices, and the trade has continued very firm. Base prices for O and P grade cows range from 292 to 299 cents/kg (104 to 107p/lb), and quality R grade cows are making upwards of 308 cents/kg (110p/lb), with some factories paying 313 cents/kg (112p/lb) in recent weeks for R grade cows.