Very difficult for plants to get steers for less than 400c/kg...
Pictured at the Munster Branch Irish Angus bull sale in Kilmallock Mart, Co Limerick are James O'Connell, Castleisland with ‘Maum Sylvie’ that sold for €2,500. Picture: O’Gorman Photography.
There is a lot of positivity around the beef trade at the factories these weeks which has become the continuing trend and welcomed by the producers.
The situation is that markets for beef are strong and the factories have requirements for intake to match the demand which has become challenging for the procurement managers at a time when supplies of finished stock are tight.
The bridge between the easing in supply from the yard finished cattle to the first of the stock off grass usually delivers the peak prices for the year.
The opportunity for producers normally ranges late April-early May to early or mid-June depending on the growing season.
Year to date the weekly intake at the factories has consistently been down on 2020 and the tighter supply is putting pressure on the factories to source sufficient stock to fill their orders.
The result is that the scenario is delivering for the producers with an upward trend in the prices becoming the norm as the processors compete against each other for the scarce numbers.
The base price in all categories of stock has been increased by at least 5c/kg with some variations between the different regions of the country.
The strongest prices are being paid in the midlands and upper regions where the supplies are tightest.
The base for steers is ranging 400-410c/kg. It is very difficult for any plant to get steers for less than 400 cents/kg and equally prices above 410c/kg base for stock being purchased on the grid is not easy to come by.
The heifers are following a similar pattern on a base running at 5c/kg over the steers.
All that said, flat pricing is nearly always the carrot on offer to suppliers when numbers are tight, and the same applies now, with particular interest in both Hereford and Angus, with reports of up to 450c/kg being on the cards for the latter, including all bonus payments.
The young bulls are generally making 395-400c/kg for R grade with numbers low and the trade for cows is continuing very strong with up to 360c/kg now being paid for the good R grade cows.
Such is the demand for cows to supply the manufacturing beef sector that some of the factories are reported to be paying up to 350c/kg for good O grade cows this week and the P grade are ranging 310-335c/kg.
The intake at the factories for last week was unchanged at 30,503 head. There were 11,495 steers and 9,061 heifers.
The young bulls amounted to 2,183 head and there were 6,753 cows.
