Markets: Upward beef price trend despite steady supply
The steer and heifer prices improvement of 45-50 cents/kg since last autumn has breathed some confidence back into the trade, after a dismal, loss making 2014, for most beef farmers.
While the overdue recovery in prices is to be welcomed, the latest official EU figures showed that prices have been rising in Ireland at a slower rate than neighbouring markets.
Mid-December to mid-January heifer prices increased by 22% in Northern Ireland, and 15% in Britain, compared to 10% in Ireland.
Quoted base prices for steers at the factories this week are generally 410 cents/kg, with some farmers successfully negotiating for up to 415 cents/kg.
Heifer prices are at a premium of 10 cents/kg over steer prices. The general quote is 420 cents/kg, with negotiations delivering up to 5 cents/kg extra for some farmers.
The trade for cows is also much more positive this week. The base price for O/P-grade cows has increased to a 340-350 cents/kg range, with more being paid for better quality cows. R-graders are quoted at up to 365 cents/kg, with a little extra being added to actual payments.
Intake has remained steady over the past week, with just over 31,700 head being supplied, which is a strong turnout for the middle weeks of January, slightly higher than in 2014, sufficient to relieve the processors of real pressure to source additional stock.
The Beef Forum chaired by Agriculture Minister Simon Coveney will meet next Wednesday, with a number of important issues for beef farmers on the agenda, to be resolved.
While processors will be banking on getting credit for improved prices, their move to give only €3/head for out-of-spec animals from Quality Assured farms will come in for some strong criticism.
The Irish Cattle and Sheep Farmers’ Association have indicated that they will be tabling a demand for ‘flat’ pricing.
Among the issues for IFA are proper and fair operation of the QPS; specifications on weight, age, residency and movements; price transparency in the form of a market index; and increased monitoring of carcase trim by Department officials.
The beef trade in Britain firmed last week, with R4L-grade steers averaging equivalent to 515 cents/kg.
In France, the trade remained steady, with no significant changes reported.
