Pre-Christmas Beef Prices: Processors trim rates amid strong supplier resistance

The second consecutive week of pressure on beef prices at the top of the range, following a slight trim the previous week.

Pressure from the factories to 'rein in' the beef prices at current or reduced levels is meeting with strong resistance from suppliers this week.

The producers believe that the processors continue to want to get the cattle to supply the pre-Christmas market, but their ploy is to get their requirements at lower cost.

Some of the factories have moved to reduce their quoted prices for steers and heifers by up to 10c/kg this week, offering a base of 660c/kg for steers and 670c/kg for heifers, but they are meeting with a lot of resistance from suppliers standing out against any reduction, and factories are reported to be warning of further cuts next week, after a rush of cattle last week to the highest week intake in 22 months.

The move was signalled last week when the higher prices were trimmed by the factories, and some suppliers were taking home 5-10c/kg less than the prior week.

It marked the second consecutive week of pressure on beef prices at the top of the range, following a slight trim the previous week.

One source said that "there seems to be more determination by the factories to pull their prices further this week and belief that they'll still get what cattle is there without having to pay extra for them".

After three weeks of supply, during which the weekly throughput increased to the highest level in eighteen months, some of the pressure on the processors to secure a build-up of stocks for the pre-Christmas trade has been eased.

But the belief is that there is a requirement for a strong supply for at least a further three weeks to meet the upcoming seasonal celebrations, with demand on export markets holding up well.

Base prices have increased by 20-30c/kg over the past month, and suppliers maintain that the processors' attempt to pull the prices this week is a tactical cost-cutting ploy that is not justified and must be resisted.

However, those with finished cattle in their sheds will have to balance their judgement between holding back and being left with the cattle into 2027 when the early sellers could see a bleaker market in a post-Christmas economic squeeze or taking the best current going rate.

There was a surge in supply last week to 36,943b head, as finishers rushed to take advantage of the higher going prices amid growing fear of pressure.

The intake was 7,000 more than the same week last year, and the highest weekly intake since the end of January 2025.

Last week's intake included 15,639 steers, 11,145 heifers, 7,571 cows and 1,789 young bulls.