Beef trade: A bit more 'bite' in beef sales at factories this week
A Limousin cow, born February '12, weighing 1,005 kilos, sold for €2,100 at a sale in Bandon Mart. Picture: O'Gorman Photography.
There are indications of a bit more 'bite' in the trade for beef at the factories this week as the recovery in the catering trade following the lifting of the Covid-19 restrictions appears to be boosting demand.
While there is very little change in the general tone of the prices being quoted by the processors for prime beef animals, there is definitely more interest in securing cattle.
It does appear that both the catering sector and their suppliers may have been caught off guard by the announcement on Friday of the scale of change in the Covid-19 regulations.
The switchboards at hotels and restaurants lit up within minutes of the welcome announcement and with the flood of bookings, there was a counter scale of demand on the suppliers to service the demand.
A positive sign is a strengthening in the prices on offer for cows, with stronger demand reflecting an increase in demand for the manufacturing beef from the catering trade, which returned to normal trading at the weekend and has been experiencing a surge in business.
The base for steers is being quoted at 425-430 cents/kg. The suppliers are reporting that most of the steers being purchased this week are coming in on a base of 430 cents/kg but the factories are reluctant to pay above that for their supply.
The trade for heifers is following a similar pattern. The quoted base is ranging 430-435 cents/kg, with the majority understood to be at the higher end, but very few suppliers managing to strike a deal for extra.
Up to 10 cents/kg has been added to cow prices, particularly for the quality grades.
R-grade cows are making up to 410 cents/kg this week for choice lots of quality cows, while the plainer animals are being quoted at 385-395 cents/kg, and prices for the lower grades have also strengthened.
There is also some improvement in the prices on offer for young bulls. The margin of discount from the steer price has narrowed to 5 cents/kg, with many young bulls making 425 cents/kg, and the prices ranging from 420 cents/kg.
There was a further increase in the intake at factories for last week, with supply up to 33,926 head, which was 2,000 head more than for the corresponding week in 2021.
The increase was reflected across all categories of stock. There were 11,592 steers, 10,706 heifers, 4,279 young bulls and 7,055 cows.
The biggest increase was in steers, which were 900 head more than the same week last year. The cows were up by 600 head and there was an increase of 200 heifers.
