Beef prices: Variation among quotes for finished stock as processors attempt to rein in prices

Four Limousin cross bullocks born February '20 average weight 600 kilos sold for €1,660 each in Gortatlea Mart. Photo O'Gorman Photography.

The weather isn't the only change that farmers have experienced over the past week and cattle finishers are learning that to their cost with the factories.

The longest day of the year in 2022 has passed and the factory bosses would like to think that the highest prices of the year for finished cattle being delivered to their plants has gone with it into history.

Yes, they have tightened their rein on the prices for stock this week and reduced their quotes by a further 5-10 cents/kg for both steers and heifers.

Steers are being quoted this week at 500-505 cents/kg generally. Some of the larger and more regular suppliers are reported to be getting a base of 510 cents/kg and there are some reports of up to 515 cents/kg being secured but that level is far more in the rare than regular category.

There is a very similar pattern to the trade for heifers which starts on a base of 510 cents/kg and could make 515 cents/kg or even 520 cents/kg depending on the supplier.

Getting the impression of different prices being operated for different categories of suppliers is a pretty correct interpretation of the trade this week. All reports indicate that there is a wider variation than usual.

But don't be mistaken, the processors are closely looking at the bottom line confirming a downward trend in the average cost of the stock and pulling overall prices back in line with their expected increase in the supply of cattle finished off grass over the coming weeks.

Even for the expert forecasters in the business, it is a guessing game as to how much the processors can pull off the current prices without hurting their intake to a point of having to reverse their action to ensure enough stock to meet their requirements.

Only time will reveal the bottom line for 2022, but the summer grass finishers who have bought in expensive stores will be very concerned over any continuation of price cuts over the coming weeks.

The prices for young bulls have tracked the steer price downwards to 500-510 cents/kg being quoted for R grade for this week. 

There is not much change in the cow prices, which retain the 20 cents/kg cut from recent weeks, and are based on around 490 cents/kg for R grade.

The intake for last week remained strong at 32,487 head, which was 1,200 more than the corresponding week last year.

While the intake of heifers dropped slightly under the same week in 2021, all other categories continued ahead of last year, making up the kill for the week.

The steers finished at 11,329 head, heifers 8,471 head, 8,992 cows and 3,034 young bulls.