Beef market report: Sign of the times as beef intake falls to 28,700

The trade for cattle at the factories remained stable this week with only slight, but upward, movement in prices.

The shorter working week after the bank holiday on Monday strengthened the hand of farmers to negotiate a top-up on officially quoted prices, particularly at factories where the intake is tightening.

However, processors are conceding on price only when it is deemed absolutely necessary in order to get the stock they need.

Numbers available to processors have tightened, and available beef cattle supplies should remain tight for this month and some weeks further into the summer, due to the very slow start to the grazing season.

There was no change overall in quoted base prices this week. The base for steers remained at 395 cents/kg with some willing to offer 400 cents/kg, and indications that the percentage of stock in the higher end of the range is increasing a little each week.

Heifer prices are being quoted at 5-10 cents/kg over steer prices, at a base of 400 cents/kg, and up to 410 cents/kg. Better quality heifers are capable of making a few cents over the quoted price.

Cow prices show very little change from last week.

The base for O/P-grades is 315-335 cents/kg, and up to 350 cents/kg is offered for the better quality Rs.

The intake at beef export plants last week slipped further, to around 28,700, the first time this year that supply dropped under 29,000 head in a normal working week.

Beef prices continue to weaken in Britain, where they have reduced substantially since the beginning of the year. The R4L-grade steer is averaging the equivalent of 437 cents/kg, after adjustment for exchange rates and VAT.

The supply of stock continues to exceed the demand for beef, which is having a negative effect on prices.

In France, the beef trade is reported to be under continuing pressure, with little demand reported for imported product at retail level, and the focus almost exclusively on French produce.

Price promotions on French produced steak and ribs are benefiting the home-produced section of the retail market.

In Italy, little change in the beef trade has been reported.