Beef prices face year-end pressure at factories
Some of this week's kill has been bought forward at last week's price, but the higher returns are largely unavailable.
Beef prices remain under downward pressure at the factories this week as the processing plants enter the last full week of operation for 2025.
Another 5–10c/kg has been wiped off the quoted steer and heifer prices this week, continuing the recent trend and tapering returns to producers closer to a base of €7/kg.
Steers are being quoted on a base of 710c/kg this week, with last week's 720c/kg at the higher end proving hard to secure. Some of this week's kill has been bought forward at last week's price, but the higher returns are largely unavailable.
Heifers are following a similar pattern, with base quotes at 720c/kg and the higher price increasingly difficult to obtain as downward pressure remains strong.
Cow prices are generally more stable at 670–675c/kg for R-grade, with good demand for well-fleshed cows, while young bulls are making up to 730c/kg for R-grade.
The trend has been supported by cattle intake remaining above 32,000 head/week, as producers moved finished cattle ahead of the year-end.
Indicative of the pressure on the trade, the breed bonus for Angus has been reduced by 10c/kg on top of the base price cuts.
"There are some concerns about how the trade for finished cattle will run in January, which can be a bleak month for beef sales if consumers are tight on cash after an expensive Christmas," is the general word in the trade this week.
Earlier expectations by many finishers of a strong end-of-year trade, with processors scrambling for scarce supplies, have been dispelled, once again showing that the greatest certainty in beef prices is their uncertainty.
The message that current beef prices at the factories remain €1.50–€1.60/kg higher than in 2024, floated to counter criticism of recent reductions, is meeting with little acceptance from finishers who invested heavily in bought-in forward stores in anticipation of stronger end-of-year prices.
"The forward cattle capable of being finished before year-end cost big money during autumn, on the expectation of strong end-of-year prices, and are now struggling to break even," noted one analyst.
Factory intake remained stable at 32,590 head, similar to recent weeks, but around 6,000 less than the same week last year. The intake included 11,395 steers, 10,386 heifers, 7,863 cows, and 2,566 young bulls.
