Beef prices continue to recover as supplies tighten

Cow prices are improved by up to 20c/kg at some factories, with demand for cows at factories specialising in supplying the catering and manufacturing trade particularly strong.

The recovery in beef prices at the factories is continuing to show further gains this week, driven by the scarcity of supply to meet demand.

Flat pricing is back on the agenda in deal-making between the factories and finishers to secure cattle, with some exceptional prices showing on individual grades at a few factories recently.

In general, the factory quotes for both steers and heifers have been increased by at least 10c/kg, with the other categories also improved in a complete turnaround of the trade after a very disappointing spring for finishers.

Cow prices are improved by up to 20c/kg at some factories, with demand for cows at factories specialising in supplying the catering and manufacturing trade particularly strong.

Steers are on a base of 640-650c/kg this week, with more suppliers holding out for the higher end of the price range and putting the processors under pressure to get sufficient stock.

Heifers have moved to a base of 650-660c/kg, with deals trending towards the higher end as suppliers adopt a harder selling policy.

The R-grade cows are making 625-635c/kg this week and R-grade young bulls are on 665-670c/kg.

According to prices compiled by the Department of Agriculture, for the last week in June one factory paid an average of €9/kg for O+ and O- heifers with a 5- fat score, while another factory paid an average of €7.50/kg for R- 5- heifers.

The national average across R and O-grade heifers for the week was 669c/kg.

The top prices are for the average of the kill in an individual grade category and Department of Agriculture published information does not reveal the number of animals in the particular grade or if the animals came from one or more than one supplier.

The same week, some exceptional prices were also paid for steers at individual factories. Most notable was an average of 784c/kg for O=4= at one factory, while another paid an average of 778c/kg for O-4= steers, and an average of 770c/kg was paid at another factory for R=4+ steers.

No details are available as to the number of animals in the particular grade at the individual factory or whether they came from one or more suppliers. The national average for R-grade steers for the week was 671c/kg.