Beef market report: Concern grows as beef price slide continues
Although the cattle intake during the past week remained stable, that did not deter some processors from reducing the base prices on offer by a further 5 cents/kg for both steers and heifers.
The base price being offered for steers this week ranges from 385 to 390 cents/kg.
Some deals are being done for a few cents more at the lower end of the range, but it is not easy to get more than 390 cents/kg this week.
Beef farmers are shopping around because of the differences in the quoted prices, but are very concerned about the price trend, particularly if they purchased very costly store cattle earlier in the year.
The price base for heifers ranges from 390 to 400 cents/kg, with most of them bought in the 395-400 cents/kg range, and a bit more scope for price negotiation than for steers, which now account for about half of the total weekly kill.
The concern of many farmers is trying to determine where the price slide for the season will bottom out, after the latest price cut this week did little to inspire any confidence for the weeks ahead, when the supply will peak.
The intake at factories last week was little changed from the previous week, at around 30,500 head. The Ploughing Championships probably affected the supply.
While the improvement in the weather makes retention of stock easier, more are now approaching the 30-months cut-off point for the Quality Assured bonus of 12 cents/kg, the loss of which can be ill-afforded at any time.
Cow prices have taken a knock of as much as 10 cents/kg.
P-grade cows are being quoted back to 320 cents/kg, with up to 340 cents/kg for Os, while the best on offer for Rs is about 350 cents/kg this week.
Prices for all cow grades are down between 5 cents/kg and 10 cents/kg in a weakening market.
While the Irish beef prices come under pressure, average prices for R4L-grade steers in Britain have increased by about 1p/kg, to a euro equivalent of 517 cent/kg (including VAT).
There has been some seasonal increase in demand, particularly for diced forequarter cuts.
In France, very little change has been reported in the trade, with the difficult market conditions of recent weeks continuing, while a steady trade was reported in Italy.
