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Beef prices have been boosted by an increase in base quotes this week, as demand for finished cattle grows in preparation for the Christmas kill.
One factory has raised its base quote by 6p/kg to 338p/kg, with another up 2p/kg to 336p/kg for U-3 grades.
Other plants are working from a base of 330p/kg to 334p/kg. However, several finishers supplying these plants indicate that very few cattle are moving at this lower base. In most cases, deals are being made anywhere from 5p/kg to 10p/kg above base.
The general price trend for farmers’ cattle is running from 336p/kg to 342p/kg.
Farmers with larger numbers of in-spec cattle, or regular sellers, are reportedly selling from 345p/kg up to 355p/kg.
Heifers are selling at the upper end of this price range.
Such is the demand for cattle over the past week, one plant was killing on Saturday, while another has reduced its lamb throughput to facilitate an extra killing day for cattle.
The kill last week at 9,729 was the largest weekly kill since October 2013. However, reports suggest that the surge in numbers has passed, and finished cattle are now proving more difficult to source.
In Britain, sources report an improving trade also. Prices for R grade cattle are running anywhere from 340p/kg to 360p/kg depending on the region. Scottish prices have strengthened this week, which is filtering down to plants operating in the northern half of England.
Locally, one NI plant reportedly matched English beef price last week to source cattle. However, exports of finished cattle to Britain are still running around 25% higher compared with last year. Sources indicate potential for more cattle to be shipped for slaughter in the coming weeks, which will help to underpin the trade here.
The other factor behind the improving local trade is the lack of competition from the Republic of Ireland.
Over the past week, only 14 cattle moved north for direct slaughter, compared to over 700 head in the same week last year.
Meanwhile, the beef trade in NI could be set for another boost with the news that inspectors from the Philippines are due here next month to undertake an audit of local factories.
The visit is part of a wider UK inspection. It is hoped that if everything goes well, processors here could start exporting product in 2017.
The Republic of Ireland already has access to the Philippines market and, in recent years, it has proved to be a useful outlet for reasonably high volumes of beef trim.
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