Beef finishers have experienced a decimation of their returns
The base prices have further weakened this week, with the steers opening the trade at 465 cents/kg.
The unrelenting downward pressure of the beef processors on prices is becoming a serious concern for all categories of the sector as trade heads into the autumn.
Any confidence that had been regained via the strong prices in 2022 has been wiped out over the past two months during which the finishers have experienced the decimation of the returns they had expected.
Week-on-week cuts in the prices are now being poured on the summer finishers in an unrelenting manner, which is going to have a direct knock-on effect on the trade for stores, with the start of the weanling season just around the corner.
The ground conditions on some farms are now of concern following the wettest July on record and reflected with steer supplies topping 15,000 head last week.
The base prices have further weakened this week — with the steers opening the trade at 465 cents/kg, widely reported to be reduced to 460 cents/kg for the later days of the week.
It is a similar pattern for the heifers, which commenced the week on a base of 470 cents/kg — expected to drop a further 5 cents/kg before the week-end.
However, there are reports from some suppliers with larger numbers and more bargaining power being able to get up to 5 cents/kg above these prices for supplies this week.
The young bull prices are running up to 5 cents/kg above the equivalent grade steer and cow prices have eased to 420-425 cents/kg for R's with a few reports of up to 430 cents/kg being achieved.
"The processors have us in their grip and they are showing who is in control of the trade in a big way by the hammering that finishers are getting because they know it is coming into the time of the year when they are going to get the cattle anyway" one very angry finisher claimed this week.
"The factories have a record of rarely paying a decent price for cattle when they are plentiful — but they are always able to pay for them when they are scarce and they need them.
"It would be a safer bet putting your money on a horse at Ballybrit this week than trying to turn a few euros on finishing cattle, which is going to be a disaster for 2023, unless there is a very big change for the better ahead" he added.
The intake at the factories for last week increased to 33,054 head, with a substantial increase showing in the steers at 15,046 head, the highest weekly intake year to date in 2023, which was obviously influenced by the combination of bad weather and falling factory prices.
The kill included 8,259 heifer, 7,235 cows, and 1,804 young bulls.
