No one knows where peak beef prices will end up
Information on the ground is that the percentage of finishers who have ditched selling to the plant 'on the grid' is increasing sharply and processors are willing to deal on 'flat price' purchases before leaving stock behind them.
Competition between the processors for cattle is continuing to drive the prices into 'beyond your dreams' territory week on week as the trade booms.
The factory prices are edging ever closer to €8/kg - almost double what the same animals were worth a year ago - and no one is willing to wager a toss on what the spring 2025 all-time record price will reach.
Suppliers are reporting that processors are offering increases of 20-25 cents/kg to get cattle for killing this week with added perks including part or all of the haulage, to further sweeten the deal.
Information on the ground is that the percentage of finishers who have ditched selling to the plant 'on the grid' is increasing sharply and processors are willing to deal on 'flat price' purchases before leaving stock behind them.
While some of the factories appeared to have intended holding on last week's price for both steers and heifers, the intention appears to have been blown overboard, by the competition for stock.
Steers are generally trading on a base of 700-710 cents/kg plus quality assurance, while some deals are worth at least 10 cents/kg more, according to suppliers.
Heifers are on a base of 720-730 cents/kg and up to 740 cents/kg and in some deals a matter of how much the farmer has to get from the factory badly in need of them.
Flat pricing is reported to be a widespread practice now for Angus and increasing for Hereford too. Including breed bonus of up to 30 cents/kg and the quality assurance adding a further 30 cents/kg, the Angus are now on the edge of returning €8/kg.
The cow price has now topped 700 cents/kg for R grade and R grade young bulls are making up to 720 cents/kg. Ask some of the wise owls in the business of beef production where is the peak on prices and the reply is fairly typical.
"No one knows - it's impossible to say" is a fairly common response.
"Last December we all thought that prices had reached their peak and there could even be a weakening of the market early in the New Year. Every week this year the prices have increased.
The supply for last week came to 31,590 head, which for the shorter working week following the holiday on Monday (St Patrick's Day) was in line with the previous week.
The kill included 11,582 steers, 10,407 heifers, 7,019 cows and 1,662 young bulls.
