Limited extras offered as beef processors maintain price control
Current insider view is that processors recognise they made a major mistake in 2025 by allowing ‘runaway’ prices to take hold, and are determined to exercise tighter control this year.
Processors continue to maintain a firm grip on price movement overall and are resisting producer demands that higher returns are justified by current beef market conditions.
However, as the familiar slogan goes, “every little helps”, and processors are known to have conceded slight ‘extra’ benefits to suppliers with larger numbers and to some regular suppliers during the past week.
An extra few cents per kilo on the base price, or a contribution towards transport costs, has been mentioned as incentives offered by factory agents to hard sellers in an effort to keep finished stock moving.
There is no indication, however, that tighter supplies relative to previous years’ intake, or ongoing producer demands for higher returns, are likely to have any major influence on prices in the short term.
These ‘one-off extras’ on base price or transport contributions are always liable to be “here today and gone tomorrow”, depending on circumstances, and do not impact overall base prices.
The current insider view is that processors recognise they made a major mistake in 2025 by allowing ‘runaway’ prices to take hold, and that, “once bitten, twice shy”, they are determined to exercise tighter control this year.
Base prices for steers continue to hold steady at 700c/kg. As outlined, some deals are being completed at up to 5c/kg more, though these are not generally available. Heifers are trading on a base of 710c/kg, with some flexibility to secure an additional 5–7c/kg for larger numbers.
Processors appear to be showing increased interest in sourcing stronger numbers of cows and young bulls, where prices have held up relatively better. R-grade cows are making up to 680–685c/kg, narrowing the price gap with comparable heifers, while R-grade young bulls are trading at up to 725c/kg.
