This week’s factory quotes have seen beef prices improve further this week, with most processors increasing their price offering for all types of factory fit cattle.
The price increase comes as supplies of factory-fit cattle have been in a general declining trend since April and price quotes have increased by 15c/kg since late May in many cases.
While this is the third week that Irish beef price quotes have increased, latest data from the Agriculture and Horticulture Development Board (AHDB) shows that as of the week ending Sunday, June 9, average beef prices across the UK were continuing to soften.
Factory quotes: Heifers and steers
This week, heifers are being quoted at €5.20-5.25/kg on the grid and steers (bullocks) are being quoted at€5.15-5.20/kg.
Some factories are opening negotiations on price at lower levels, but are having to pay more to secure any significant supplies of cattle.
Supplies of prime cattle are particularly tight at present as shed-finished cattle have become less available and many cattle that are at grass are still not factory fit.
Most procurement staff had been expecting a tightening in cattle supply in he second quarter of the year and the prolonged winter and difficult grazing conditions this spring have further enlarged this supply deficit.
Cows
Cow price has also seen some level of strengthening this week. Cow price in the Republic of Ireland remains much stronger than cow prices in Northern Ireland despite prime cattle in Northern Ireland being a stronger trade than prime cattle in the Republic.
U grade cows are being quoted at up to €5.10/kg at the higher-end of the price scale with other outlets quoting €4.80-4.85/kg.
Interestingly, some of the outlets that are strongest on prime cattle price are much weaker on cow price.
In may cases, prices well above what are being quoted, are being paid for cows.
The chart below shows prices paid for O=3= grade cows by factory in the week ending Sunday, June 9:
R grade cows are being quoted at €4.70/kg. O grade cows are being quoted at €4.40-4.50/kg and P grade cows are being quoted at €4.30-4.40/kg.
Click here to view more information on cow prices.
Bulls
Under-24-month-bulls are being quoted at €5.40/kg for U grade bulls and €5.30/kg for R grade bulls. €5.10 and €5.00/kg are being quoted for O and P grade bulls respectively.
Under-16-month bulls are being quoted at €5.15-€5.20/kg on the grid.
Again, in the prices actually being paid for bulls, there remains a significant variation.
According to figures from the Department of Agriculture, Food and the Marine (DAFM), there was a 38c/kg difference in the prices paid for R-2+ grade bulls in the week ending Sunday, June 9.
As always, the best advice to farmers with factory fit cattle is to sell as they come fit but while this is the case, farmers should be aware of the price variation in some categories of cattle and identify the best location to sell their cattle.