Lack of the green stuff affects mart trade
This week has seen the first widespread indications that some of these elements have come under pressure — and the result has begun to affect the trade.
The elements in question include the supply of grass and the possibility that some summer grazers have now filled their quotas.
The effect has been a fall-off in prices for the plainer type animal in some — though not all — marts.
Starting in Carrick-on-Suir, where auctioneer Michael Cunningham told me that last Friday’s sale saw, “A steady trade for good continental types, but plainer cattle were back.” Michael commented that it was possible that “some men are now full”, and those that are not are becoming more wary, because “Grass growth has in effect stopped”.
Despite this, Carrick reported an almost full clearance of its 500 head on Friday.
There was a very large turn out of heifers due, according to Michael, to the exceptional trade for this class the previous week. “They all sold well, except for some of the plainer ones.”
Another change he noted is that the dealing men have in effect been squeezed out of the market almost completely in recent weeks, due to the high prices, and they now confine themselves to buying smaller lighter stock to order. This may account to some degree for the fact that the calf trade in Carrick on Friday was “very strong.”
Moving up the road to Kilkenny, and last Thursday’s sale, George Chandler tells me they had a slightly smaller sale than the previous week, with 1,020 animals on offer.
As would be the case in Carrick the following day, quality lots sold well but the plainer stock met a softer trade. George mentioned that beef bullocks and heifers were in short supply. This resulted in bullocks over 600 kg making €750 to €1085 over their weight, and beef heifers coming in at between 600 and €1070 over the weight. Store heifers made from €450 to €700 over their weight.
The shortage of beef bullocks had the knock-on effect of under pinning the cull cow trade in Kilkenny, with Friesians making €1.30 to €1.90/kg, and their continental cousins ranging from €1.55 to €2.09/kg.
Staying in the south east, Richard Kirwan of New Ross Mart tells me that last Saturday’s sale saw 500 animals on offer, with the trade remaining “very good”. Asked if the plainer stock were easier, he replied, “If they were, it was very little.” He said competition for all types of lighter cattle was “savage.”
Richard considered the demand for the lighter stock was driven by that other element that keeps the cattle business afloat, money.
With the money so strong for the heavier bullocks and forward stores, they averaged from €745 to €1015 over the weight in New Ross. Richard said many men were now switching to lighter animals. “Because the money isn’t as big”. It’s a logical shift but still an expensive one, and a longer road.
Moving west to Sixmilebridge, Co Clare, also on Saturday last, mart manager Sean Ryan felt that, “The trade is slipping.”
Sean cited three main reasons for his opinion. “Europe is quieter for exports, grass growth is poor, and the cattle were probably too dear anyway.”
In relation to the types of animals affected, he said the were the plainer animal easing, mainly out of Friesian cows, “the likes of Friesians, Angus and Hereford crosses.”
Weanlings too were back, according to Sean, with prices having dropped by as much as €75 in the last three weeks.
Quality animals however, of R grade and up, remained very much in demand, he said.
While Sean was reporting a couple of weeks ago that some farmers brought stock home, having refused upwards of €3 a kilo, that trend has now been reversed, with sellers becoming “a little nervous.”
“Farmers are now prepared to sell, preferring the money to the cattle.” Sean also reckons the trade may ease a bit further, as the summer grazers get filled up.
South to Limerick next, and this Monday’s sale in Kilmallock. Denis Kirby tells me there were 2,340 on offer, with 929 calves included. Farmer customers pushed on the prices of all stock. However, “Factory cattle were maybe a little easier,” he said.
Denis summed up the strength of the calf trade with the tale of the man from Athlone who arrived to buy calves, became frustrated at the prices, and retired from the calf ring to buy his quota in weanling heifers instead. With one lot of 10 weanling Friesian bulls weighing 312 kg making €695, he might consider breeding as opposed to buying!
He also told me that they had their biggest sale ever of dry cows, with 300 animals on offer. It’s very obvious that the dairy men continue to take advantage of the exceptional trade to bring unwanted animals to the marts, where they are snapped up by their fattening brothers for summer grazing.
As in Carrick, Denis also mentioned that the dealers seemed to be restricting themselves to buying for specific orders, with on-spec buying of stock to be turned at the next mart almost non-existent.
Tuesday’s sale in Kanturk brought out 600 calves and 500 other cattle. Mike Scanlon told me they had a full clearance, and with plenty farmers still anxious for stock, “the trade held up firm.”
The heavy cow trade was once again underpinned by factory buyers.
With growth now effectively on hold due to cold weather of late, it will be very interesting to see what happens when warm growing weather returns, and there is a “flush” of spring grass. Will the relaxation in prices for the plainer type animals reported in some marts this week continue?
Or will we have a second bout of “grass fever”, as one man described it to me last weekend. I would not bet against it.
In my experience, when the green stuff really starts growing, cattle men tend to reach for their cheque books.
