Cattle supply strengthens as prices edge up at marts
Beef prices have continued to edge upwards at the factories this week while the supply remains strong at over 31,000 head for last week.
Any improvement in prices is a welcome trend for producers and the “every little helps” is an apt reaction for upward movement of around 5 cents/kg for the steers and heifers at the processors.
The factory agents are offering 405 cents/kg in general to producers as a base for the steers and conceding up to 410 cents/kg in deals as finishers engage in hard dealing. There are some reports of up to 415 cents/kg being secured for steers but it is the exception rather than the rule.
Heifer prices are being quoted at a premium of 10 cents/kg over the steers, delivering a base of 415 cents/kg, while up to 420 cents/kg is being paid on a reasonable percentage of the intake.
There is no change in the cow prices at the factories this week for the O/P grades while R’s have improved by a few cents/kg. The base for O/P grade cows is quoted at 310-350 cents/kg and up to 360-365 cents/kg for the R’s.
As from the beginning of the month the quality assurance bonus of 12 cents/kg on in-spec animals has continued as before and a new bonus of €3/head is payable on non-spec animals from a quality assurance accredited farm.
The latter is due to come up for discussion at the next meeting of the beef forum, due to be held shortly, where producer representatives will be voicing their disappointment at the bonus on non-spec from QA farms which is providing the processors with QA beef at a premium of less than 1 cent/kg.
The ‘deal’ which the processors insisted upon at the forum was that the bonus on non-spec animals had to be cash neutral and they are demanding revision of the grades qualifying for the 12 cents/kg bonus for any further increase on €3/head.
The intake continues strong at the factories. Supply last week topped 31,000 head which was around 600 head less than the same week last year.
Aggregate intake for the first three weeks of 2015 is down by 2,000 on 2014.
The trade in Britain has remained steady with R4L grade steers averaging at Stg 373.5 pence/kg which is equivalent to 515 cent/kg (incl Vat).
A robust trade was reported during the past week with demand remaining firm for most cuts. Forequarter cuts have performed well in recent weeks due to some tightening in the supply.
Similarly, steak cuts and topsides are also trading steadily although there has been some weakening in striploins reported.
In France the trade is holding steady. Ongoing retail promotions have centred on forequarter cuts.
In Italy, after a good Christmas trade no significant increase in trade has been reported for the early weeks of the New Year. At retail level demand is best for cheaper cuts due to consumers focusing on savings after the festive period.
