Intake at beef factories stabilised near 27,500

No knock-on effect was evident in the beef market early this week from the BSE alarm in Co Louth.

It was ‘steady as she goes’ for prices, supply, and demand.

The downward trend of recent weeks in supply appears to have bottomed out, and processors appear to have decided to stall the upward trend in prices.

The quoted base for steers was unchanged at 420-425 cents/kg, and it has become more difficult to negotiate on price, except where a processor is under real pressure to get additional stock — of which there have been a few instances reported from around the country.

Heifer prices are quoted at a base range of 430-435 cents/kg, with heifer sellers finding it just as hard as steer sellers to get extra this week.

Intake at the factories stabilised last week at around 27,500, around 900 more than the previous week.

That level of supply remains a little tight for processors, and the increase in cattle prices has also put some pressure on their profit margins in recent weeks — so they have become very resistant to conceding any further price increase, unless it becomes absolutely unavoidable.

The outlook is that current price levels are unlikely to be maintained for a day longer than is necessary.

Any increase in the beef cattle supply, and the processors will be moving to tighten prices. Cattle should be coming off grass within a fortnight — a few weeks later than usual — and it will be a challenge at that stage for farmers to hold prices.

Cow prices have eased by 5-10 cents/kg this week, more pronounced for the Os than the Rs, but a definite weakening from the peaks of recent weeks. The beef trade in Britain has firmed, with R4L-grade steers averaging equivalent to 488 cent/kg (including VAT). Improved demand is reported, and tightening supply.

In France, little change was reported in the beef trade over the past week.

In Italy, recent bank holidays resulted in a slower trade, with continuing slow demand and stronger supply.