The beef trade remains stable this week, with no great change in terms of the strong prices that have characterised the business for the last month or more.
nd the good news for beef producers is that the outlook for the medium term looks positive.
Indeed, when a factory official admits that processors are working in a “perfect storm for farmers”, you know things are looking good.
As ever, supply and demand are the primary levers in any market, and farmers appear to be winning on both fronts.
Global demand has rarely been as strong, with the Chinese ensuring a home and a handsome floor price for every kilo of beef produced across the Americas, Australasia and Europe.
Where they are not buying the beef directly, the Chinese are creating gaps in supply that others can exploit.
Closer to home, Connemara’s Harry Kane should not only be the toast of London and Letterfrack — beef farmers around the country should raise a glass to the man who is helping keep burger and steak sales hopping in England.
There will inevitably be a lot of hot air wafting across the Irish Sea should England make the final of the Euros, but if it helps put an extra 10c/kg on beef prices it just might be worth it.
Despite the lift in British beef sales, it is understood that the factories are not as anxious for cows this week. The word is that meat plants are beginning to get sufficient supplies of cows from farmers and finishers.
However, fancy prices are still being paid for well-fleshed stock. Industry sources report that R-grade cows are making €3.85/kg, O-grades are on €3.70-3.75/kg, while €3.60/kg is being paid for P-grades.
In terms of prime cattle, steers are generally making €4.25-4.30/kg, with heifers on €4.30-4.35/kg.
Quoted prices may be below these levels, but deals are being done left, right and centre in terms of flat prices and carriage. This is a reflection of the strong processor demand and the tight supplies. Bord Bia has suggested that 100,000- 120,000 less cattle will be available this year.
In addition, the poor grass growth during April and May means that grass cattle are running around six weeks later than usual this year.
Northern Irish buyers are also helping to stir the demand pot. The latest figures show that close to 1,000 head are moving across the border each week.
It may seem small, but it all helps on the demand and the price side.
Des Morrison of ICMSA advised farmers with finished cattle to dig in, saying: “Anyone with in-spec cattle or good, well-fleshed cows should bargain hard on price.”
IFA’s Brendan Golden agreed. He said farmers should sell hard as factories are struggling to match supplies with market demand.