Market demand for beef has significantly improved

Factory bosses are urging extreme caution over the risks of the 'knock-on' impact of stronger factory prices on the live trade.

The beef prices have continued to strengthen this week as the processors engage in a struggle to secure sufficient cattle to fill requirements for the markets, despite the intake now reaching its 2025 peak of almost 33,500 head last week.

While weekly intake is running 3,000-5,000 head above these weeks in 2025, market demand for beef has significantly improved and the processors have need for every animal they can get.

While the factory agents on the ground are battling with the demand for cattle exceeding the supply they are walking a 'tight rope' to fill the kill sheets at the factories at the least cost, which is becoming a much tougher task by the hour.

Bought-in store animals as well as the home bred have cost heavily this year and the finishers are in a struggle to get the last cent possible to balance their books, while very fortunate that the trade has taken a positive turn over recent weeks.

At the same time, the factory bosses are urging extreme caution over the risks of the 'knock-on' impact of stronger factory prices on the live trade for stores for winter/spring finishing, stressing that the current factory prices are no guarantee for future trade into 2027.

Quoted grid prices are running 20-30c/kg up on two weeks ago, but there is variation across the country with prices on offer in the north-west edging ahead of the rest of the country.

Base prices for steers are being quoted at 650-660c/kg, and more being paid in direct deals. Heifers are running on a base of 660-675c/kg being quoted, but more being paid for choice lots.

Prices for R grade cows are running at 640-645c/kg and R grade young bulls are ranging 670-675c/kg this week.

Sellers this week are reporting that for many 'deals' the grid price of the animals is being relegated to a guide towards the negotiating 'floor' for a 'flat' price for their stock.

"While it is not going to apply to all sellers and all cattle, the 'flat' price is more available this week than it has been to date this year and just underlines the hunger at the factories for cattle," explained one finisher with cattle to sell.

"We need every cent we can get. This has been a very tough year for cattlemen. Any improvement in the beef price is very badly needed," he added.

As mentioned above last week's intake of 33,490 head was the highest weekly supply year to date, running at 3,400 head more than the same week last year. The supply included a strong supply of 14,711 steers, 9,644 heifers, 6,660 cows and 1,921 young bulls.