Irish beef prices hit new record ahead of Christmas
Is Have The Strong Of Bination For The Scenario Finished Demand Together Cattle Market Supplies Tightened Perfect Makes Know Perfect Deliver Returns Producers To Decent With That Beef, Which, The For
Beef prices at the factories have reached an all-time record this week with processors hungry to get extra stock to fill their orders for Christmas.
An extra 5-10 cents/kg has been added to the factory quotes for both steers and heifers this week as competition between the meat plants to source sufficient intake continues to drive demand.
Supplies of finished cattle have tightened, which together with the strong market demand for beef makes for the perfect scenario that producers know is the perfect combination to deliver decent returns.
The general base quoted for steers has moved to 530-535 cents/kg, while some suppliers are reporting that 540 cents/kg can be got for larger numbers of quality steers.
Heifers are on base of 535-540 cents/kg and a few cents/kg more being paid in some deals.
Adding the quality assurance bonus, and in the case of both Angus and Hereford, as applicable, the breed bonus, the factory cheque comes in at a level that was only dreamed of in the past and finishers who held back on selling earlier in the Autumn are being well rewarded.
Cows and young bulls are also showing strong gains. The R-grade young bulls are ranging 550-555 cents/kg while cow prices are also at an all time record of 520-535 cents/kg for R grade, a first ever to draw parity with steers.
"It is not often that finishers have the satisfaction of saying that they are being rewarded well for Autumn finishing of cattle, but it has to be admitted that we've never before seen the price at this year's current level" admitted one finisher summing the trade.
"It may be that the prices are at a level that they need to be to get a bit of confidence back into finishing cattle, but it does not always happen like that and there have been too many bad years for those who have stuck with beef" he added.
The present situation is the perfect storm for the factories, which they had not prepared for by banking advance supplies being available through their own controlled yards or fixed contract finishers.
Buying in forward store animals has been an expensive exercise through the Autumn. The record of making a good return on such investment is not good and many finishers, as well as factories, have been caught off guard this year on their expectation for the end-of-season trade.
But the real kernel to the current situation is the level of demand for Irish beef on the markets surpassing past seasons. The intake at the factories last week was 1,500 more than the same week last year, but the processors appear to be still under pressure to get even more cattle.
The supply was 39,813 head, which included 14,823 steers,12,353 heifers, 10,373 cows and 1,767 young bulls.
