Steady reduction in the return to finishers
Five Angus bullocks born March '21 average weight 456 kilos sold for €1,050 each in Cashel Mart. Photo O'Gorman Photography.
The quoted prices for beef at the factories are unchanged in a continuation of the pattern over recent weeks while throughput is gradually increasing.
The base for steers is 480 cents/kg with agents having less scope for a top-up, and heifers are trading on a base of 485 cents/kg. The cow prices are firm at 475-480 cents/kg for R grade and prices for the young bulls are generally on par with the steers.
However, analysis of the prices which are actually being paid by the processors shows a steady, gradual reduction in the cost of the input for the factories and, consequently the return to the producers.
Over a five-week period from early July returns to producers have been reduced by up to €80/head, which belies the perception that it has been a "steady" run of prices, with minimal, if any, change to the quotes each week.
The prices, which are compiled each week by the Department of Agriculture from the factory pay-out sheets show how the return has continued to slip over the weeks.
The base average paid by the processors for the week ending July 10 for steers was 528 cents/kg and 531.2 cents/kg average over base grades for heifers.
Fast forward to the week ending August 14 and the Department returns showed a base grade national average of 506 cents/kg for the steers and 509 cents/kg for heifers, a reduction of 22-23 cents/kg.
The reduction for the national average over the base grades at the 29 slaughtering centres is in line with the price change for individual prime grades for both steers and heifers, according to the returns from the Department of Agriculture.
For R=3+ grade, the national average paid dropped from 527 cents/kg to 505 cents/kg and for similar grade heifers the decline was from 534 cents/kg to 509 cents/kg over the specified period.
Looking at the R-3+ cattle supplied over the period, the national average paid by the processors dropped from 531 cents/kg to 507 cents/kg and for heifers the decline was from 534 cents/kg to 509 cents/kg.
On a typical carcase, the suppliers are receiving €80/head less than in early July as the processors have eased back gradually on the margin over their officially quoted prices being paid for cattle.
The supply last week held strong at 34,803 head, which was less than 1,000 head above the same week last year. The steer intake of 16,363 head fell slightly behind 2021, while the heifer supply of 9,544 head was slightly up.
The supply of cows is continuing ahead of 2021 with intake last week of 6,524 head. The young bulls accounted for 1,648 head.
A steady trade for lambs is returning unchanged prices from the factories for this week.
The quoted prices are ranging 630 cents/kg in general across the country with the exception of 640 cents/kg being offered in Co Kildare this week.
However, the general belief is that the processors are interested in supplies and are paying up to 650 cents/kg to get sufficient lambs to meet their requirements for the markets.
It may be one of the usually low periods of the year for the lamb trade, but suppliers are pointing out that the strength of the lamb trade in France should be delivering higher returns to producers.
The Irish prices have been stable for a number of weeks which is not helping to maintain the confidence of breeders at a point in the year when they are making decisions on breeding numbers for the next season.
Prices at the live sales are holding at the present and do not appear to be reflecting the trend at the factories with larger numbers being offered these weeks.
Corrin Mart had one of their largest entries of 2022 on Monday with 650 head on offer. The butchers' lambs sold to a top price of €190, which was paid for a pen of nine weighing 55 kgs.
The heavier lambs did not match that return with a lot of seven weighing 59 kgs being knocked down at €186 and a lot of three weighing 60 kgs making €180.
A pen of ten weighing 54 kgs also sold for €180 and a lot of two weighing 58 kgs made €170, while the factory type lots sold for up to €91 over at the sale.
