The red-hot cattle trade could really kick into overdrive this week as up to 20,000 farmers who cut animal numbers for the BEAM scheme come back into the market for replacement stock.

Mart managers report that BEAM farmers have waited anxiously on the wings as prices have pushed on over the last three months, but can start to restock from this Thursday (July 1).

They are coming into a mart trade that is on fire.

Comparisons with Ringside averages from last year show that forward store and beef bullocks are €240/hd dearer, while 500kg store cattle are almost €110/hd more expensive.

Strong competition between factory agents has helped push on the trade in the sales rings and is attracting bigger entries of beef heifers and bullocks.

The mart trade is being driven by increased processor demand and strengthening factory prices.

While the general run of quotes for bullocks last week ran from €4.15/kg to €4.20/kg, with heifers on €4.40-4.25/kg, significantly more has been paid to farmers.

Up to 10c/kg more had been paid to those with either bigger numbers or to farmers with Angus and Hereford stock. Meanwhile, a flat price of €4.50/kg has been paid for combinations of O- and P-grade Angus cattle from the dairy herd.

The current buoyancy in factory quotes is a reflection of stronger global beef markets. This is due to a combination of increased Chinese demand, and supply issues in the world’s leading beef producing states.

The top four beef exporting nations are Brazil, Australia, the USA and India. These states supply 61pc or 6.64 million tonnes of beef which is traded internationally.

However, they are all experiencing problems.

Brazil exports around 2.52 million tonnes of beef annually. But Brazil’s fixation with supplying the Chinese market over the last two years has led some experts to believe its “killing itself out of cattle”.

Reports indicate that large numbers of smaller abattoirs have closed due to competition from bigger operators as Brazilian prices have risen.

Bord Bia report Brazilian prices for R3 steers as averaging €3.18/kg at the start of June, up from €2.20/kg a year ago.

India’s beef trade initially suffered due to the ban on exports driven by a religious/political agenda in 2015/16. Beef shipments have since recovered as processors turned to water buffalo as a replacement.

The effects of the 2018 and 2019 droughts in Australia continue to see supplies remain very tight, with exports reported to be back 190,000 tonnes (15.4pc) in 2020.

In the US current heavy rains have seen concerns rise that this year’s harvest may be below forecasts, a factor that could see grain prices rise and by extension put pressure on both beef production and price.

Closer to home, data from the EU Commission shows that beef production across the bloc fell by 1.2pc in 2020, with a further decline of 0.9pc forecast for 2021.