Cattle farmers urged to reject reduced prices from factories
While the Lions' pack had a great day last Saturday in Australia, their successful efforts at pushing hard to gain metres and penalties still hardly matches that of the beef factories here in Ireland to push quotes and prices downwards.
Later in this article you will read a very noteworthy point from IFA's Henry Burns regarding the factories' soundings in the Food Harvest 2020 report and their targets of 40,000hd/wk. Well, if we were at that figure now, I dread to think of what they would be willing to pay for cattle.
Last week's estimated kill was only 26,650hd and the processors have pulled the quotes by 5-10c/kg. If there was another 14,000 cattle being killed where would the prices have settled?
At the moment, most of the stock being killed are being done so at last week's prices. But as you will see from the table, steer quotes are back by at least 5c/kg, with heifers and bulls showing drops of up to 10c/kg on quotes.
Factories are generally offering 430c/kg for steers, with some farmers securing base prices on the grid of 435c/kg. The 12c/kg quality assurance (QA) was paid on top of this.
In the north-west, I heard of R-grade steers killed yesterday for 450c/kg, including the QA payment.
Heifer quotes were at 440-445c/kg. This is a far cry from the lofty heights of the 470-480c/kg they were at just four short weeks ago.
Can finishers afford this massive drop from one month to the next? Absolutely not.