Prime cattle prices slip amid seven-month-high kill
The beef factory bosses don't believe in wasting opportunity to exercise control when the balance of demand and supply swings in their favour.
Like the colder and wetter conditions on farms over the past week, the squeeze by factories on the beef prices has followed, with cuts applied across all main categories for this week.
Prices for prime beef animals, steers and heifers have tightened by up to 10c/kg, with the heavier brunt of up to 25c/kg being shaved off the cow prices.
The processors have been aided by a further increase in supply to over 32,000 head, the highest in seven months, although nearly 8,000 fewer than the same week last year.
Two weeks ago, the vibes of "more control" by the processors over the price trend were spreading — as reported at that time — and sure as night follows day the beef factory bosses don't believe in wasting opportunity to exercise control when the balance of demand and supply swings in their favour.
Steers are being quoted on a base of 740c/kg this week, and it is a challenge to get many c/kg above that passed on to the farmer returns. Heifers are being quoted on a general base price of 750c/kg, with a similar approach towards paying anything extra.
Cow prices have weakened to about 700c/kg for R-grade after a cut of 15–25c/kg, and the young bull prices are on about 760c/kg for R-grade this week.
The scenario on the ground is that the processors have reduced their killing days/week by at least one third compared to previous years at this time of the season, and adjusted their requirement to fill orders in line with the changed supply situation.
One insider explained: "There were wildly speculative expectations being circulated among finishers as to where they would force the beef price up to this year's end when the pressure of reduced supply would be really hitting the processors."
They added "There were talks of ‘dream-like' price being achieved before the end of 2025. There was never a ghost chance of that, because the processors who had to find customers for the beef knew very well the housewives would turn their back on beef at such astronomical prices and price control would have to be exercised to keep the business on the rails."
The processors are pointing out to suppliers that the current beef price is about €2/kg higher than in 2024. It's accepted the crucial suckler sector was at death's door because of low returns and without a decent price increase. The biggest challenge now is to keep the base for beef at a price that leaves producers with a margin, without killing the market.
Kill last week was 32,157 head, including 12,323 steers, 10,337 heifers, 7,346 cows and 1,737 young bulls.
