Delicate balancing act by producers and processors

WITH an increase in the movement of cattle to the factories over the past two weeks, the balance of price control between producers and processors has become delicately balanced.

There is no change in the actual prices being paid for stock by the factories for this week. The official quotes are almost identical to a week earlier and a majority of the factories are finding it necessary to pay over the quoted rates for most of their intake to maintain the supply.

The quoted base price for steers is ranging 350-355 cents/kg (125-127p/lb). Most of the stock being killed this week are going in to the factories at around 5 cents/kg more than the quoted price, particularly at the factories at the lower end of the price range.