Beef prices: Breed bonuses paying off at just the right moment

Breeders and finishers are reaping the fruit of 20 years of positive marketing by Hereford Prime and Certified Angus promotions.

While the pace of increase in beef prices at the factories has eased, trade remains steady, and the demand for all categories of stock continues solid as a rock.

Base prices being quoted for steers and heifers are averaging 90-100 cents/kg higher than a year ago, while the prices on offer for cows show upward movement of up to 120 cents/kg on early February 2022.

In the looking glass, it appears to be a very positive position for producers. But the stock being supplied to the processors in early 2022 were finished on meal at nearly half the current price, and silage fertilised for less than a third of the cost of the forage currently being fed.

Nonetheless, few could have envisaged just a short two years ago, when the UK exited the EU, that the positivity of the beef markets for Irish exporters would be anywhere near where it is today.

The current strong demand for cattle is being driven by the requirement to supply the orders for beef on export markets, putting pressure on the processors to secure sufficient stock with China now added to the consumer listing.

Most of the factories are now slaughtering for the market in China, while demand in the UK continues to be consistently strong and overall returns to the processors are very positive, which has to be read as a strengthening omen for beef over the coming months.

Steers continue to be quoted on a general base of 520 cents/kg for this week, with a sizeable percentage of the intake at a base of 525 cents/kg. While there is rumour of 530 cents/kg being available, it is not generally.

The heifers are on a base of 525 cents/kg, with 530 cents/kg being generally paid.

When the breed bonus for Hereford and Angus is added to the quality assurance, the better grading Hereford and Angus are achieving returns within the shadow of 600 cents/kg, while market demand is very strong for both products at home and abroad.

Breeders and finishers are reaping the fruit of 20 years of positive marketing by Hereford Prime and Certified Angus promotions, which are now paying off on the investment of their foresight.

The young bulls remain strong, with prices on par with the equivalent grade steer and intake slightly up on 2022.

Cow prices are continuing to show the biggest gain on historical prices. The quality R-grade cows are making up to 500 cents/kg and are not far behind the prime steer and heifer price.

The intake of 36,236 head last week was 150 more than the same week last year. Except for heifer, each of the other categories were ahead of 2022, reversing any expectation of an imminent 'drying up' in supply.

There were 12,902 steers, 10,656 heifers, 8,852 cows and 3,200 young bulls supplied.

Intake for the first five weeks of 2023 is showing an increase of 3,300 head over the same period in 2022.