Beef market report: Beef prices showing a welcome recovery
Producers are mounting more pressure on processors with a harder sell approach, before parting with their stock, and the factories are beginning to feel the necessity to work a bit harder on sourcing sufficient supplies.
The downward trend in Britain has also bottomed out and prices have been showing some recovery over the past week, which is also to be welcomed.
The base price being quoted for the steers at the factories this week has moved to 400-405 cents/kg.
Very few are selling for less than a base of 405 cents/kg this week, but getting the base up to 410 cents/kg is proving difficult, unless the processor is really under pressure to get the animals.
The base for heifers is running at a premium of 10 cents/kg over the steers. Most of the heifers are making close to 405 cents/kg and some good lots are commanding a few cents over that.
Intake at the factories last week was on par with the previous week at around 28,650 head, which included around 9,700 steers and some 8,000 heifers, both categories broadly in line with the previous week’s supply.
While the growth of grass on farms has been phenomenal since the improvement in temperature there is still some way to go before cattle finished off grass will become available to the factories in any numbers.
The early weeks of June could be very difficult for the processors with sheds emptied and a gap in supply putting pressure on sourcing sufficient stock to fill regular orders.
There has been very little change in the cow prices. The base for O/P grade cows is ranging 315-335 cents/kg and the good R’s are at 350-355 cents/kg.
As mentioned, above, the trade in Britain edged upwards last week on the back of increased demand reported with topsides performing well.
On average the R4L grade steers were making around Stg 325.9p/kg. In Euro terms the British steer price is now equivalent to 438 cents/kg (incl Vat), with the Euro currently valued at 78.2p Sterling.
The heifer prices were generating around 436/kg equivalent on average. The latest figures from HMRC for the first quarter of 2016 have shown a significant rise driven by higher volumes of fresh boneless cuts with favourable exchange rates helping boost competitiveness.
In France, the trade continues to remain slow with recent difficulties in retail demand for imported product remaining. Demand remains best for steak cuts such as entrecotes.
There were limited beef promotions at retail level taking place last week focusing on chuck steaks and ribs produced in France and in Italy, little change has been reported in the trade over the past week.
