Beef trade: Factory demand continues to outstrip supplies
The demand for finished cattle at the factories is continuing to outstrip the supply as the trade edges into the final days pre-Christmas. Photo: Kanturk Mart
The demand for finished cattle at the factories is continuing to outstrip the supply as the trade edges into the final days pre-Christmas.
Overall, the prices are continuing steady, with the gains over the recent weeks being maintained, while some of the larger suppliers are securing deals, which are worth up to 5c/kg for loads of quality stock.
Most of the steers are making a base of 425c/kg with a small percentage at up to 430c/kg for larger supplies and regular suppliers.
The heifers are on a base of 435c/kg. Larger suppliers are doing deals at 440c/kg, while getting above that is possible where the factory is under pressure to get the stock, but not regularly available.
The processors are treading a tight rope in balancing the demand to get stock and holding a rein on the upward movement on the price. As an alternative to conceding further upward movement on price, deals including transport and flat pricing are being reported this week.
The young bulls are running broadly on par with the steer price on a base of 425 cents/kg and the cow trade is holding steady at recent weeks' returns of up to 390 cents/kg for R grade cows.
The intake for last week was 34,784 head which was slightly higher than the same week in 2020. Steers accounted for 11,497 head, with the heifers at 10,475 head, young bulls on 3,349 head and cows at 8,987 head.
The weekly intake at the plants is now running slightly higher than for the corresponding weeks last year, despite an average year-to-date drop of 1,600 head/week in the supply compared to 2020.
The beef trade is one section of farm production that continues to baffle forecasters on the majority of their predictions.
A year ago, the major concerns were that post Brexit on January 1, 2021, the market for Irish beef in the UK could be severely impacted, because of the heavy reliance on the destination, up to 53% of Irish beef exports.
In hindsight, the predictions on both demand and price have fallen very hollow as 2021 is set to become a record year on both demand for cattle at the factories and the average price paid.
At the same time, the supply has turned out to be much stronger than had been predicted. Estimates were that supply for the year could be down by 110,000-120,000 head, while with only a few weeks left to the end of the year, the supply is showing the decline at 78,412 head.
Heifers are showing the biggest drop at over 32,000 head with in excess of 15,000 fewer steers going through and the young bulls down by nearly 10,000 head to date for the year.
