Rumours of cuts prove unfounded so far as quotes solidify at €5.20-5.40/kg

With the kill overall up by over 74,000 head on 2021, average factory prices for R3 bullocks and heifers are €1.11/kg stronger than 12 months ago

Moving on: This Belgian Blue cull cow, weighing 790kg, sold for €2,350 at Mohill. Photo: Gerry Faughnan

Moving on: This Belgian Blue cull cow, weighing 790kg, sold for €2,350 at Mohill. Photo: Gerry Faughnan

Latest factory prices

Moving on: This Belgian Blue cull cow, weighing 790kg, sold for €2,350 at Mohill. Photo: Gerry Faughnan

Martin Coughlan

June 07 2022 02:30 AM

Last year the kill for this short working week was 28,731. It will be interesting to see how this week’s kill compares.

The most up-to-date figures available show that that for the last week of May this year, the kill was 32,030, almost exactly 1,000 more than for the same week in 2021.

While that increase can be largely attributed to the extra cows killed — 723 more at 8,531 — the breakdown of bullocks and heifers (at 35pc and 26pc respectively) is exactly the same as in 2021.

Numbers of young bulls were less, however, by 2pc at 3,070.

One factory agent argued at the weekend that cattle numbers, while “less than what might be needed”, are not as chronically tight as some might think.

He claimed that for factories to maintain strong production during June — not only this year but every year — the only place they could turn for meaningful numbers, given that few cattle come off grass at this time of year, is to those with stock in sheds.

On the other hand, with the kill overall up by over 74,000 head, average factory prices for R3 bullocks and heifers are €1.11/kg stronger than 12 months ago.

And U3 young bulls are better by €1.07/kg, with O4 cows up €1.31/kg.

Latest factory prices

So where are we at in terms of prices? Rumours of price cuts, especially in relation to cows, have been circulating over the past week, based around stories that markets are becoming “price-sensitive”.

Over the weekend I checked with factory agents and found that while they were under instruction not to give more, they also appeared to have been told not to give less, for fear of losing fit stock.

One agent said: “Factories have no more interest in giving more than Brian Cody had in shaking Henry Shefflin’s hand at the end of the Leinster final on Saturday.

“They may only view their farming clients as a means to an end and periodically can be arrogant and ignorant, but they at least have learned to be clever enough not to do so in front of the media.”

After a good run on prices some farmers are reverting to a pessimistic outlook because it’s what they know — plus those with beef sold would now like to buy cheaper stores.

The factories know that, especially if meal goes to €500/t, and they will be planning from a long way out, but are the numbers now there to make that happen?

As for prices, culls and young bulls remain as they were, while bullock and heifer base prices solidify around €5.20-5.40/kg.