€40 per head gone as price slide continues
This summer trend has set in several weeks earlier than usual in 2011, eroding profit margins for farmers who purchased very expensive stores.
Base prices quoted for steers this week ranged from 354 to 357 cents/kg (126p-127p/lb), having dropped more than €40 per head over the past few weeks.
The price pattern is similar for the heifers, now priced only 5 cent/kg ahead of steers.
The cattle supply is holding up well, which strengthens the hand of the processors to cut prices. Last week’s kill was 29,236 head. While this is about 1,000 less than the previous week, it is still a high intake for early June, and about 400 head ahead of the corresponding week in 2010.
There were around 8,500 steers in the mix, with 7,500 heifers, and the supply of cows was very strong at 8,500. Young bulls accounted for 3,600 head.
Processors seem to be banking on the cattle supply staying high, due to fat cattle coming off grass, and farmers selling fast before the price slumps further.
The trade for cows is also coming under pressure. Base prices for O and P grade cows ranges from 280 cent/kg (100p/lb) to 300 cent/kg (107p/lb), the higher prices being paid for the heavier cows. The better quality R-grade cows are making up to 315 cents/kg (112p/lb) at the top of the trade.
The beef trade in Britain has been generally steady over the past week. In contrast to the Irish situation, cattle prices firmed, with R4L-grade steers averaging equivalent to 368 cent/kg (131p/lb).
On the Continent, there was very little change to report in the beef trade over the past week.
