Beef market report: Poor grass growth may cut beef supply further
While there is some variation in prices being quoted by processors, prices on offer overall remain within the same range as last week, except where hard-bargaining farmers can take advantage wherever demand locally exceeds supply.
Base prices being quoted for steers range from 415 to 420 cents/kg, with some processors, particularly in southern counties, at the lower end of the range.
Further north, processors have to pay at the higher end to get sufficient stock.
Heifer prices stay 10 cents/kg ahead of steer prices, at 425-430 cents/kg.
It seems to be slightly easier to get a few cents over for better quality heifers, than for steers.
Intake at the factories last week was around 29,100, almost identical to the previous week.
This intake is around 2,000 head lower than the average weekly intake for the corresponding weeks last year.
The supply may be settling down below the benchmark 30,000 head — which should transfer some bargaining power from processors to cattle farmers.
Supply indications point towards a further tightening over the coming weeks.
Grass growth has been slow, resulting in delays to finishing cattle off grass, with a knock-on effect expected for processors sourcing stock from mid May onwards.
Cow prices at the factories have improved as much as 5 cents/kg, particularly for O/P-grade cows, with quoted prices ranging from 355 to 365 cents/kg.
Heavy R-grade cows are in demand at up to 385 cents/kg.
The gap between Irish and UK prices has tightened over the past month, after prices paid in the UK eased by 19%, and Irish prices advanced 5%.
In Britain, R4L-grade steers average equivalent to 512 cent/kg (including VAT).
Trade is reported as best for steak cuts, particularly strips and ribeyes, with trade for fillets and manufacturing beef slow.
In France, little change has been reported in the beef trade, with promotions last week centred on roasts, fillets and sirloins.
In Italy, the trade is reported to be slow, due to sluggish demand.
