Improved cow trade may be good omen for the prime beef market

Beef market report

At Macroom Mart last Saturday, two Charolais heifers born November 2019 and January 2020, which weighed 355kg and sold for €785.

Beef prices continue relatively stable at the factories, but with some downward tweaking.

Heifer prices, which are usually at a premium of up to 10 cents/kg over steer prices, continue at parity with steer prices, and weekly reporting by the Department of Agriculture on actual prices paid has revealed a decline in the national average base prices.

But better weather is helping finishers by easing pressure to lighten stocking rates.

Base prices for both steers and heifers are quoted this week at 360 cents/kg in general. A few processors are trying their hand at getting steers for 5 cents/kg less, but without much success.

But finishers seeking a price top-up are equally unsuccessful, at least for steers. 

For heifers, the situation is slightly less rigid, and while most of them are being bought on a 360 cents/kg base, some deals at up to 365 cents/kg base are being reported this week.

In particular, processors are willing to pay a bit more to get Hereford and Angus cross heifers.

Marketing work by members of the Hereford and Angus breed societies is paying a dividend of up to 20 cents/kg on top of the quality payment, which is worth another 20c.

There is no change in the prices for young bulls. They continue to trade at a base of 350-355 cents/kg in general for R-grade. Some of the young bulls can make up to 360c.

The cow trade is bucking the general trend, with prices edging stronger, not a bad omen for the prime beef sector.

Demand for cows eased slightly in recent weeks, but is reported to be very strong this week, with top quality cows making up to 330-335 cents/kg, and some exceptional reports of 340 cents/kg being paid for U-grade cows.

Compared to 2019, the intake of beef cattle up to September has fallen behind by about 1%. 

For the same period, live exports to the EU falling by about 27%.