Farmer v beef processor standoff continues

The cattle farmer versus beef processor standoff continues, 10 days after the 24-hour beef protest by 15,0 00 farmers, and further action against the beef factories has been sanctioned as part of IFA’s campaign on prices and market specifications.

The improvement of a few cents/kg in quotes for cattle at factories this week is nothing more than a very minor seasonal price adjustment.

It falls far short of the demands or the expectations of farmers.

Instead, it indicates that processors continue to resist significant price increases.

The base price for steers being quoted by processors for this week is 370 cents/kg.

There are some reports of 5-10 cents/kg more being negotiated by farmers in individual deals.

The base for heifers is 375-380 cents/kg, with the premium over steer prices easing to 5-10 cents/kg this week.

As for the steers, some individual are securing deals at the factories delivering 5-10 cents/kg over the quoted price.

But more and more cattle are going over 30 months, incurring a penalty of 5-10 cents/kg, and losing the 12 cents/kg quality asssured bonus (which can add up to as much as 80/head).

There are some flat price deals being offered, and these are worth considering at all times, and can be of benefit, but it is up to each farmer to asses their own situation on which is the best option.

Meanwhile, everyone is watching the weekly supply trend.

Last week, the kill dropped to just under 26,000 head.

A reduction is normal for bank holiday weeks, like last week, and there was the added factor of the IFA action on Monday and Tuesday.

However, given the 37,000 supply of the previous week, the average of 31,500 over the two weeks was more than sufficient to relieve processors of any pressure to lift prices.

Cow prices have strengthened by 5-10 cents/kg at the lower end of the prices.

The base for O/P-grade cows is 310-325 cents/kg, with up to 345 cents/kg on offer for the Rs.

The beef trade in Britain remains steady, with R4L-grade steers averaging equivalent to just over 480 cent/kg (including VAT).

Retailers are focusing on round cut promotions ahead of Christmas, with a slowdown in demand for steak cuts and forequarter cuts.

In France, the beef market is largely unchanged, with Interbev launching a 50-day TV and in-store beef promotional campaign.