Another 5c per kilo added to beef prices in the past week

The base for the well-fleshed quality cows has now gone over €7/kg and suppliers are reporting deals for the good R grade cows are being made at up to 690 cents/kg, while the R grade young bulls are ranging over 700 cents/kg.

As the summer grazers nervously ponder what to do as they congregate at the mart sales rings, the positive world beef balance of supply lagging expected demand is encouraging, but the extra capital required to maintain usual stock levels of bought-in animals is adding to the risk.

Base prices for steers have moved to 680-690 cents/kg this week. The heifer base prices has edged to 700-710 cents/kg, with up to 720 cents/kg being reported as "going" in some areas of the country.

The general word is the factories are "very anxious" for the cattle numbers, with the four-day working week, following the national holiday on Monday, reported to be adding to the pressure.

Suppliers are widely reporting that selling on the 'grid' is now being exceeded by the scale of cattle going through the factory gates on 'flat price' and 'special' deals to deliver greater certainty on returns to producers.

Built-in bonuses and the factories taking responsibility for the haulage costs "are becoming much more widespread and easier to negotiate with the factories", according to some suppliers, who calculate it is capable of boosting the net return to finishers this spring.

"It is clear to everyone watching the trade that the factory agents are paying more for the finished cattle at the mart sales than the same would make if they were delivered to the processors at their quoted prices" is the assessment of one supplier.

"They [factories] are so hungry to get all they can that they are increasing the prices week on week because of the competition between them rather than producers saying they are not paying enough, and I've rarely seen that before, except at a period of great scarcity" they added.

The comment is substantiated by mart reports of beef animals averaging €4/kg at the sales last week.

The intake at the factories slipped back last week to 37,535 head, which was almost 2,000 more then for the same week in 2024. All categories were ahead of last year, with the steer supply nearly 30% higher than the corresponding week last year.

Last weeks kill included 14,214 steers, 11,709 heifers, 8,604 cows and 2,074 young bulls.