Marts closed and beef prices severely cut at factories

Beef prices were severely cut at factories this week, even as finishers had to face selling cattle without recourse to the marts, closed down by Covid-19 restrictions.

The base price for steers and heifers was cut by 10c-15cs/kg, with processors saying they had come under severe pressure to secure markets. Steer and heifer prices are both at a base of 350c/kg.

Some finishers may have got a few cents more, but the drop in market demand has taken pressure off processors to pay more.

Their intake last week slipped to 35,607 head, just under the same week in 2019, the first week for some time for intake to fall below the 2019 level. The 12,045 steers was similar to 2019, the heifer supply was down 500 head from 2019, at 10,489.

Despite lower supply, weight restrictions have been imposed, with a cut-off point of 400kg for the better quality stock, which impacts severely on continental breeds.

The young bull price has been reduced to 340c/kg for Rs. Sellers of cows are struggling to get above 290c-295c for Rs, with O-grade cows at 260c-265c, and P-grade at 240c-245c.

Meat Industry Ireland senior director Cormac Healy, representing processors, said: “Processors, particularly in beef and lamb, are under pressure to maintain throughput levels, given the loss of the important food service market channel.

“The Covid-19 pandemic is causing serious devaluation of finished livestock prices, as key market channels and certain EU markets are effectively closed and the mix of sales through retail outlets is skewed heavily towards lower value cuts.”

Reactions from politicians included Sarah O’Reilly of Aontú saying weight restrictions were introduced “without prior notice”.

“This contravenes an agreement made with farmers last September, and it deducts a further 10c a kilo from the price.

"The minister needs to call the processors into line, there is an onus on factories to steady the market” she said.