‘Signs of further optimism’ in the trade could help some big gambles pay off for farmers

I watched a documentary recently about the last offensive launched by the Germans in WWII , known as ‘The Battle of the Bulge’.

The decisive engagements took place around the town of Bastogne. American forces were hopelessly outnumbered and outgunned but refused to surrender. When the German commander asked his American counterpart to surrender, his note was returned with one a one-word reply: “Nuts”

‘Nuts’ is a word that I’ve heard a lot over the last few months to describe the mart trade. Week after week, those wishing to keep themselves in the game have gone out and — on the strength of strong factory returns — pushed prices for replacements upwards.

Some of the prices paid, particularly for better-made bullocks or heifers, look way beyond what many would consider a profitable gamble, given that production and feed costs have also rocketed.

Yet factory demand, with relatively stable factory prices, has underpinned the trade.

And with Bord Bia reporting “signs of further optimism” in their latest analysis of the trade, with “firm market demand reported for most carcase cuts”, that gamble may yet pay off.

Our main export market, the UK, is strong, and while the factory price for Irish beef continues to be ahead of most of our European competitors, over the last four months that gap has closed.

Data from the Department of Agriculture shows that as of the middle of June this year the EU 14 average deadweight cattle price was €3.80/kg but by the end of the first week of October that figure had risen to €3.96/kg. In France the average rose from €3.78/kg to €4.02/kg, while in Germany it went from €4.02/kg to €4.29/kg.

By contrast, the Irish price merely rose from €4.15/kg in June and €4.17/kg now;you can see where Bord Bia are coming from.

Back ringside, numbers continue to remain strong, with several managers noting a further increase in the number of year-and-a-half stores presenting.

Despite being tempted by strong prices a month ago, many farmers held back cattle to graze the bumper grass harvest of the last five weeks. Last week, good numbers of those cattle held in reserve were released.

This led to the overall average price of the 400-499kg bullock on our ringside table falling by 6c/kg, when every other weight division on the bullock table was 1-2c/kg stronger.

With the first tranche of the Single Farm payment due this week, one farmer suggested that it might be an idea for the minister to put off the second round until next year.

Why? “Tax” was the reply — and this is also the reason why he is considering holding stock he would normally sell in the run-up to Christmas until next year.

In the Know: Around the marts

Delvin

Thomas Potterton reported a big sale and a continuation of strong demand across all sections.

Among the bullocks under 450kg, the tops pushed €2.70/kg, leading to an average of €1.98/kg. There was a big entry in the 500-550kg section, with an overall average of €2.11/kg and two 520kg Angus setting the bar at €2.48/kg .

In the 550-600kg division prices topped out at €2.62/kg, with the average €1,366/hd — up €188/hd on 12 months ago.

There was a very strong cull trade saw, with 500kg+ animals averaging €1,075/hd, compared to €830/hd this time last year.

Ballinakill

A good trade for good cattle, but lesser types continued to be a trickier proposition.

Heavy bullocks sold from €1.90-2.25/kg, with forward bullocks €2.00-2.45/kg, while lighter stores made €2.20-3.15/kg.

On the heifer side, beef sold from €2.00-2.45/kg, with stores making €2.20-3.05/kg.

Weanling bulls and heifers sold from €2.20/kg to a top of €3.15-3.20/kg. Cull cows made €1.40-2.15/kg.

New Ross

Another big entry where the rule book on what happens when numbers increase going out the window as Hereford and Angus stock pushed on by another 5-10c/kg.

Seven Hereford bullocks at 495kg averaged €2.23/kg, while continental stores sold from €465-980/hd over the €/kg.

In the heavier division beef bullocks made €700-1,120/hd over the €/kg, with beef heifers making €640-1,070/hd over their weight.

Heavy Friesian bullocks sold from €500-780/hd over the weight, with lighter black-and-whites making €270-505/hd over the weight.

Loughrea

Jimmy Cooney noted that as the number of weanlings has increased, prices for the plainer one have come under pressure.

“I’d say the plainer weanling is back maybe €50-70/hd, meaning we’re averaging €2.60-2.65/kg for bulls and heifers,” he said. “€3 is there to be got but only for the very tops.”

Among the bullocks, bigger numbers of 400-500kg year-and-a-halves saw their price slip; the figure was €2.25-2.30/kg overall.

Cull cows sold from €160-170/kg for Friesians to €2.20/kg for continentals.

Kilmallock

The 300-400kg bullock averaged €2.13/kg with the tops making €2.33/kg, while in the 400-500kg section bullocks sold from averages of €1.67/kg among the bottom quarter to €2.22/kg in the top division.

In the 500-600kg section overall averages ranged from €1.63-2.19/kg.

On the heifer side those from 350-400kg made €1.48-2.20/kg, while the range in the 400-500kg section was from €1.91-2.45/kg.

In the 600kg+ division the overall average was €2.33/kg, with the tops making €2.53/kg.

Baltinglass

There were smaller numbers here, with strong demand holding prices steady.

Sample prices on the bullock side included a 605kg Limousin at €1,340, and a 515kg Belgian Blue and a 470kg Limousin at €1,000.

In the lighter section, six 290kg Charolais averaged €800/hd, with five at 250kg making €750/hd.

On the heifer side, two Limousins ranging from 540-570kg sold for €1,240 and €1,310 respectively.

In the cull cow section prices ran from €750-1,200/hd.

Ennis

Numbers here held, with last Thursday’s sale seeing plenty of demand for store and beef heifers as the trade overall maintained.

Among the heavier heifers were a 655kg Charolais who sold for €1,780,with two heavier Charolais at 710kg and 695kg selling for €1,740 and €1,750 respectively.

In the store section a 450kg Charolais made €2.73/kg, with three 578kg Herefords averaging €1.99/kg, while a better-made 500kg Hereford saw the hammer at €2.22/kg.

Anything of quality among the cull cows sold from €2.10-2.48/kg, while better Friesians made €1.60-1.90/kg.

A strong entry of aged bulls saw their prices average €1.78/kg, with the top call seeing a 975kg Limousin making €2,030.