Prices up 5c/kg as processors stock up for the pre-Christmas trade
Pictured at the sale in Skibbereen Mart are four Simmental cross bullocks born Jan. 2020 & average weight of 522 kilos which sold for €1,040 each. Photo O'Gorman Photography
Suppliers of both steers and heifers have seen factory prices increase five cents/kg for this week's kill as the processors stock up for the pre-Christmas trade.
As the popular advertising slogan says "every little helps" the increase of €15-€20/head on the prime beef animals will strengthen further the return to suppliers this week, many of whom are describing it as "hard got".
Having firmly held the forte on price for the past number of weeks, the fear of further restrictions under Covid-19, with any new variant threatening to impact intake for the final slaughtering days before Christmas, has influenced processors to increase the prices.
The seasonal end of year tightening in the supply has kicked in and the factory bosses are hoping that the lift in price will be enough to keep the cattle supply flowing up to the Christmas break.
The extra five cents/kg has also been influenced by the competition for supply in the upper regions of the country and the widening in difference between prices on offer north and south of the border.
For most of the factories, the base for steers is now at 420 cents/kg with some deals reporting up to 425 cents/kg being achieved.
The pattern is similar for the heifers, which are now on a base price of 425-430 cents/kg.
Those prices generally rein across the southern half of the country. Moving closer to the border, the competition has got tougher for the processors trying to source prime beef animals.
Closer to the border with NI, the suppliers in Donegal are reporting a base of 440 cents/kg being the going rate for steers this week, while heifers are trading on a base of 445 cents/kg.
It now looks that the peak weekly supply for the year has passed, with some 5,000-6,000 head/week less than the top of recent years being recorded for 2021.
The intake for last week showed very little change at 35,534 head, which was 1,300 head less than the same week last year.
The supply of steers was back 1,200 head compared to 2020, at 13,151, while the heifers were down 600 head compared to last year. The intake of young bulls was up by 300 head at 3,019 head with the supply of cows showing a similar increase at 8,655 head.
Year-to-date the supply is back by 77,659 head on last year up to November 27.
The price on offer for the young bulls has increased to 420 cents/kg for R grade this week, but the cow prices are static at up to 385 cents/kg for Rs. The O grade cows are ranging 355-360 cents/kg and P grade are making from 345 cents/kg.
