Finishers under pressure from weather and factories

Suppliers reported that most of the factories were accepting that they had to pay up to 515 cents/kg to get the cattle numbers required but it had become harder to tie down than last week.

Beef finishers are finding themselves battling the processors as well as the weather this week as they feel the pressure from both on their incomes.

As the winter-like weather over the weekend continued to pile pressure on all livestock farmers, the week for beef finishers opened with them having to dig their heels in to resist the pressure from the factories to tighten on the prices.

Many of the factories quoted the base price for steers at 510 cents/kg for supplies this week. They are meeting with resistance from suppliers to accepting less than 515 cents/kg which was generally paid last week.

Suppliers reported that most of the factories were accepting that they had to pay up to 515 cents/kg to get the cattle numbers required but it had become harder to tie down than last week.

"They are paying 515 cents/kg not to leave the cattle behind them on the farms, but that's as high as they'll go this week," explained one supplier.

Heifers are generally being quoted at 520 cents/kg, which is broadly on par with the run of the trade for last week but the extra that would have been possible last week is not on the table for this week.

The IFA has slammed the processors for using the weather as a reason to tighten on the prices and advising finishers to strongly resist any attempt to pull on prices.

The association is underlining that a gap of 20 cents/kg has opened up between Irish and UK prices compared to last year.

Beef chairman, Declan Hanrahan, explained that the Irish beef price is currently 10 cents/kg less than this time last year, while the UK price is the equivalent of 10 cents/kg higher than these weeks of 2023.

He says that any downward pressure on price is not justified because the markets for beef are firm and supplies are tightening with expectations that the intake will drop by over 40,000 head for this year.

His advice to the finishers is to adopt a 'hard sell' approach with the factories and strongly resist any cuts at this time.

The prices on offer for the young bulls have also been tightened, but continue to run at 10-20 cents/kg stronger than the equivalent grade steer at 520-535 cents/kg going for Rs.

Cows are continuing a steady trade in strong demand with good R-grade cows making 460-475 cents/kg.