Factories call halt to beef price rises after months of increases

From the later days of last week, the signals were emerging from the processors of 'no more increases', which was applied across the country for this week's kill, with the processors reducing their slaughtering days.

After months of week-on-week price increases for beef animals at the factories, the processors have, in unison, called the end of the run of upwards-only record-breaking returns for the producers this week.

Since last autumn, the weekly rise in beef prices, across all categories, had become the norm of the trade, and the timing of any stalling, originally speculated upon for early this year, had become nothing more than a guessing game.

From the later days of last week, the signals were emerging from the processors of "no more increases", which was applied across the country for this week's kill, with the processors reducing their slaughtering days.

In general, the prices to suppliers have been held at last week's level, with fewer operation days on the line to balance for all fall-off in supply.

Base prices for steers are, in general, 760-765c/kg. There are deals returning 770c/kg, but harder to get this week.

Some suppliers are reporting factory agents appear to be willing to leave cattle behind, rather than pay extra to get them in.

The base for heifers is generally 770-775c/kg, with up to 780c/kg being paid this week for a sizeable percentage of the supply.

"The factories have now 'called a day' on the rising prices, and the challenge for the finishers will be to see that the prices hold without cuts," was the assessment of one supplier.

"The rest of April and May is usually the toughest time for the factories to get sufficient cattle and they may be setting the base for that this week. With a bit more growth over the coming weeks and ground conditions presently excellent, some of the early finishers will likely be trying to get cattle away from early to mid-May while the price holds — if it does," they added.

The challenge for the early finishers will be to get cattle away as soon as possible, while the prices — hopefully — continue to hold up. Forward animals bought in at top dollar prices over recent weeks stand to lose heavily on a weakening of the trade.

The supply for last week was 36,276 head, which was 4,000 head more than for the corresponding week last year and brought the intake for the first quarter of the year to 504,917 head, which is 10,000 up on quarter one in 2024.

Heifer intake is up 13.6% on 2024, and steers were higher by 5.7%. In contrast, the number of cows is down by 6.4%.

For last week, steers supplied came to 14,448 head, heifers adding 12,206 head, and cows adding 7,480 head, while young bulls supplied came to 1,545 head.