EU beef production drop key driver of beef prices

There is some variation on the base prices being offered by the processors, who are giving no indication they are coming under pressure to source a higher intake of stock.

The beef prices at the factories have steadied this week, with the improvement in the weather also easing the pressure on finishers to move stock off the land.

However, there is some variation on the base prices being offered by the processors, who are giving no indication they are coming under pressure to source a higher intake of stock.

Base prices on offer for the steers are ranging 710–720c/kg in general, with some reports of finishers being offered a base of 700c/kg in cases, but overall, agents are holding out against conceding to deals at above their base quotes for the week.

The base for heifers is ranging 720–730c/kg, and suppliers are finding it hard to get above these prices, while in some cases, the prices being offered are slightly lower.

The cow prices have also steadied to 670–680c/kg for R-grade, while the R-grade young bulls are making 720–730c/kg and up to 740c/kg in some deals.

Some of the factories are slow about quoting forward this week, and they seem to be adopting a cautious approach and measuring up the situation before being committed to a price for more than a few days,” said one finisher.

“There seems to be no doubt now that they are satisfied to get fewer cattle at the lower prices than engaging in any bidding battle to keep the numbers up, and it is a guessing game to know what they are at,” he added.

Beef producers visiting the Bord Bia stand at the National Ploughing Championships in Tullamore last week were very interested in the market prospects over the coming months.

The message was generally that the EU drop in beef production has been the catalyst driving the price increase this year, with the market analysts expecting a strong demand to the end of this year and beyond, based on the expectations of supply and export markets for beef remaining strong.

Bord Bia pointed to supplies in the UK being down by 5% this year, with overall EU production down 8% and individual EU countries showing a decline of up to 18% in beef production this year.

There was a further increase of 600 head in the supply to the factories last week, which increased to 29,550 head — the highest in almost five months — despite the attraction of the Ploughing Championships for farmer interest, but inevitably influenced by the deteriorating ground conditions due to the heavy rainfall.

The kill included 13,697 steers, 8,441 heifers, 5,856 cows and 1,085 young bulls.