Wide price variation revealed in factory returns for R-grade cattle
The supply of cattle to the factories has continued to tighten, with the processors adjusting operations to the lower kill by reducing the number of days per week their slaughtering line operates.
Positive vibes from the processing industry on the trade forward for beef for the year are being measured against the resistance of the factories on improved prices being paid to the producers.
Finishers were given a very positive outlook on prices for the months ahead at some recent information gatherings, sufficient to underpin confidence to the end of 2025.
The supply of cattle to the factories has continued to tighten, with the processors adjusting operations to the lower kill by reducing the number of days per week their slaughtering line operates.
Overall, the trade remains firm at last week's prices in general, while a slight improvement in prices is evident at the factories which were paying at the lower end of the scale.
The base for steers remains on 730–740c/kg, with up to 750c/kg being reported for some deals with the factories, while heifers are working off a base of 760c/kg and up to 770c/kg, and the cows remain a firm trade at 720–730c/kg going for R-grade this week.
However, prices compiled by the Department of Agriculture from factory returns show that the prices paid for similar-grade animals vary by close to 40c/kg in the same week.
The average paid for similar grade heifers nationally was 790c/kg. Prices paid by the individual factories ranged from an average of 608c/kg to 769c/kg.
These prices are inclusive of bonus payments and penalties applied to the animals at the individual factory, and there is no breakdown to show if it includes over-age animals or if the animals were purchased on flat pricing rather than on the grid.
These factors can significantly change the actual average price/kg shown on the analysis, but the clear message is that significant price differences may exist between individual factories for the same type of animal.
The supply last week was 28,855 head, almost similar to the previous week, while running 2,500 head lower than the same week last year. The intake included 11,249 steers, 8,945 heifers, 6,059 cows, and 2,009 young bulls.
The steer intake was similar to the corresponding week last year, while each of the other categories was down on the 2024 supply.
