Demand for cows remians strong despite slip in factory intake
A 545kg Aberdeen Angus steer born in June 2019 sold for €990 at Macroom Mart last Saturday. File Picture.
Beef finishers are clinging to the hope that the scale of downturn in the quoted prices from the factories for this week will be shortlived.
A further drop of 10-15 cents/kg in the prices being quoted for both steers and heifers at the plants has increased the downturn in producer returns by between €50 and €70/head conpared to two weeks ago.
There are also very strong reports circulating that the breed bonus being paid on Hereford and Angus have been either reduced or dropped at a number of factories.
At the same time the intake at the factories has also slipped which should have been of benefit to maintaining the floor under the prices being paid.
But several of the factories have reduced operation on the line to three days explaining that orders don't justify full operation.
The intake for last week slipped to 30,454 head, a level which, at least over the past year, would have increased the pressure on the factories to source more cattle and strengthen the hand of producers with stock to sell.
However a further cut of 10 cents/kg for the steers and up to 15 cents/kg off the heifer price has stunned suppliers.
Some plants are offering suppliers a base of 370 cents/kg for both steers and heifers this week.
In general the steers are being quoted at 370 cents/kg with heifers on a base of 375 cents/kg.
Most of the stock being slaughtered for the week have been bought forward from last week at 5-10 cents/kg above current prices.
It is reported that up to 375 cents/kg for the steers and a base of 380 cents/kg for heifers is being secured in deals with the factories.
It is believed that many of the tradtional Winter finishers cut back on the number of cattle being fed over this Winter amid concerns of the possible impact of a no-deal Brexit, which should mean that supplies over the next few months will be tighter than normal.
Producers are hinging on continued demand and tighter supplies for a recovery of at least some of the recent drop in the prices.
The young bull prices have also been reduced this week with R grade young bulls dropped to 365 cents/kg. The only category to avoid the downturn are the cows for which demand remains strong and R grade cows are making up to 330 cents/kg.
The intake of cows is also continuing strong at 6,028 in the kill last week.
The supply for the week included 11,172 steers, 9,261 heifers and 3,437 young bulls.
