Factories shave off another 10c/kg in third week of beef price pressure
Analysis of the actual prices being paid for animals over recent weeks has also revealed a tightening in the difference between the processing centres, with more paying closer to the average.
Beef processors have further confirmed their determination to pull tighter on the prices for stock this week, shaving another 10c/kg off their quotes for the third consecutive week.
Most of the factories are now on a base of 720c/kg for steers and 730c/kg for heifers, although some suppliers reported deals for slightly more being available for the early days of this week. Cow prices have also slipped to 690–710c/kg for R-grade animals.
The national average base paid by the export factories has reflected the reduced quotes over the past three weeks, according to the prices published by the Department of Agriculture.
Analysis of the actual prices being paid for animals over recent weeks has also revealed a tightening in the difference between the processing centres, with more paying closer to the average.
However, noticeable differences remain, with the Department of Agriculture published returns revealing up to 60c/kg between the highest and lowest price paid for similar grade heifers for the week ending June 7.
That adds up to a difference of more than €200/head for a typical weight heifer and a very sizeable amount on a load of stock, after the analysis showed a top price of 814c/kg compared to a bottom price of 753c/kg for R3 heifers.
Steers fared only slightly better on the price returns, with a difference of 51c/kg between the highest and lowest factory average for R3 animals.
There was a top price of 813c/kg factory average in contrast to 752c/kg at the lowest side, compared to a national average of 782c/kg—also adding up to a substantial difference for a load of stock delivered to a factory.
These prices are inclusive of bonus payments where applicable, and consideration must be given to any mix of flat prices at the individual factory. These factors are not quantified in the prices published by the Department of Agriculture and may have an influence on some of the reported returns.
However, while overall there appear to be fewer of the factories paying closer to the average than earlier in the year, discrepancies continue to exist.
The supply last week increased by around 600 head to 29,133, which was 500 less than the same week last year.
The intake last week included 10,094 steers, 8,529 heifers, 7,041 cows and 2,901 young bulls. The year-to-date position is now that the increase has slipped to around 1,500 head up on 2024.
All indications are that supply should remain tight for the remainder of this year, with overall throughput down on 2024.
