Beef trade: Downward slide continues as processors pull back prices by another 10c/kg
Five Hereford cross bullocks born March '21, average weight 428 kilos, sold for €1,040 each in Thurles Mart. Photo: O'Gorman Photography.
The downward slide in the beef prices at the factories has continued this week for many of the suppliers whose returns have been cut by up to 10 cents/kg.
There is some variation in the prices being quoted by the processors but the hard sellers and those with larger numbers are engaging in a tug-o-war to some benefit on price before parting with their stock.
Base quotes being offered for steers have dipped to 480 cents/kg at some of the plants and in general range 480-490 cents/kg this week, depending on the requirement at individual factories.
That said, there are reports of 490-495 cents/kg being paid for steers after some haggling with the factory agents who are under pressure to get cattle and finding the going tough at the lower offerings.
It is a similar pattern with the heifer trade, which are on a quoted base of 490-495 cents/kg with deals being reported at 500-505 cents/kg. The young bulls are a shade stronger than the steers with R's at 495-500 cents/kg and the cows are steady at around 480 cents/kg for the good R grade cows.
The overall situation is that the processors have a requirement for the intake at the present level or very close to it. However, while they want the cattle, they are less willing to continue to pay the current higher prices for them as the season moves closer to the Autumn trade.
It is no secret within the sector that 'deals' at special prices, between some of the factories and some of their larger suppliers do exist. Comparison of the actual price paid, as compiled each week by the Department of Agriculture, and the officially quoted price can be very revealing.
Suppliers frequently question as to why the actual average price paid by a factory for a specific grade and animal type differs from that which they received for a similar type animal at the factory.
Unfortunately, it is the weaker that usually suffers. Suppliers of small numbers of cattle can frequently fall the victims to their weaker bargaining power in negotiating a price.
A difference of 10 cents/kg can account for €700-€800 more or less in the farmer's cheque for a typical load of cattle. The intake continued strong last week at 33,062 head, which was around 1,000 head higher than the same week last year.
The number of steers was slightly lower than in 2021, while each of the other categories contributed to the overall increase. The supply included 12,763 steers, 8,999 heifers, 7,945 cows, and 2,749 young bulls.
