Factories row back on low steer offers as farmers refuse less than 330c/kg
Attempted downward pressure by the processors over the past 2-3 weeks has been rejected at the farm gate as farmers refused to entertain a base price below 330c/kg for steers, which made plants realise there was not much point pursuing that avenue.
This appears to be the figure most factories are working off this week, whether it is Kepak, Dawn, AIBP, Moyvalley, Kildare, Slaney, Dunbia, Duleek or Liffey.
The R price for in-spec steers going into Donegal Meats is at 342c/kg, with the Us at 350c/kg. From what I hear, Donegal Meats has competition within their own county from AIBP Clones at the moment. Its heifer prices are running at 3c/kg over the bullocks.
Elsewhere, most of the rest are quoting 336c/kg of a base for the heifers. Kepak Clonee is working off a base of 340c/kg and reports of 345c/kg being offered by some of the plants seem to be pretty well founded.
A flat 342c/kg for a mix of under and overage, mainly R-grade, heifers was paid in the west, while R-grade overage steers sold for a flat 336c/kg.
The general run for U-grade young bulls ranged from 336c/kg to 345c/kg, with the Rs at 330-336c/kg. The Os made 319-322c/kg. Angus bulls killed in the south last week made 358c/kg, 345c/kg and 330c/kg including the bonus for the U, R and O grades respectively.
IFA livestock chairman Michael Doran said cattle supplies showed signs of tightening this week and farmers need to ensure that they maximise the price potential of their cattle if they are selling.
The cow trade continues very strong with reports suggesting that as high as 322c/kg was paid for top-quality stock towards the north-east last week. Incidentally, when I rang the factory mentioned for quotes in this article, it was one of the lowest quotes I got. Other plants were willing to pay 308-314c/kg for good, heavy R grades, while some tried and succeeded in buying similar Rs at as low as 280c/kg. O and P+3 grades are being quoted for anything from 265c/kg upwards.