Northwest beef prices running 10-15c/kg ahead of southern factories
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Beef prices at the factories are slowly moving upwards, as demand at the processors continues very strong and the lead-in to the pre-Christmas trade is just around the corner.
The base prices on offer for this week are highly dependent on the location of the processor, with a clear price difference opening up between the northern regions and those further south.
Prices being quoted in the northwest for steers and heifers this week are running 10-15c/kg ahead of the factories in the south, making a sizeable difference in the value of a load of finished animals, either steers or heifers.
Across the south of the country, steers are being quoted on a base of 505-510c/kg. Suppliers are reporting that it is a struggle to get above the higher end of that price range.
Heifers are on a base of 510-515c/kg, with some wriggle room to get a few cents extra for larger numbers of quality heifers.
Moving on to the midlands, the processors are conceding a bit more to get sufficient supply this week, and as many times in the past, the northwest has moved ahead to lead the price league with a base of 525-530c/kg for steers and heifers making 5c/kg more.
The reality is that the factories have a requirement for a strong intake, and the lead-in to the Christmas trade is a crucial season for the processors to fully supply the market opportunity.
There is an expectation that prices across the country will continue to harden gradually over the next few weeks, with more competition between processors in all regions of the country.
Breed bonus payments on offer for Angus and Hereford are currently quite generous and add significantly to the returns, and suppliers should ensure that they avail of what is available.
The young bulls are making 20-25c/kg above the same grade steer, and the price strengthening of the cows is continuing, with the processors anxious to get all that is available to offer.
R-grade cows are making 480-490c/kg, and those with larger numbers of well-fleshed cows are in a strong position to deal with the processors for up to 500c/kg before parting with them.
There was a slight easing in the supply of cattle to the factories last week, slipping by 650 head from the previous week to 40,777 head, which was still a strong intake and close to the corresponding week last year.
The intake included 17,185 steers, 11,756 heifers, 9,829 cows, and 1,413 young bulls.
