The balance of power in the beef trade is shifting to sellers, with beef supplies showing greater signs of tightening.

While factories are keen to retain pressure on the trade, a growing number of agents are reporting difficulties in sourcing stock as the week progresses.

Factories are also becoming increasingly worried about beef supplies in the coming weeks, with agents starting to canvass finishers about likely supplies.

Despite what factories say, there are clear indications that plants are struggling to maintain throughput and that negotiating power is reverting to farmers.

Most steers have moved this week at a base price of €3.85/kg, but specialised finishers and regular sellers are having more success in securing a base of €3.90/kg for today (Thursday) and tomorrow.

There is more scope to bargain on heifer prices, with supplies tightening at a faster rate than steers.

Despite last week’s kill increasing from 30,575 to 31,155 head, heifer throughput reduced 312 head to 6,812.

While some plants continue to quote a base of €3.95/kg, there are only a very small percentage of heifers selling below €4.00/kg. A base of €4.05/kg is also becoming much more common, with independent plants first to move.

Mart managers also report factory agents becoming much more active for limited supplies of slaughter-fit steers and heifers.

Supplies of Hereford and Angus heifers are also falling, with higher numbers killed in the last 18 months at a younger age.

Reports suggest some plants have paid a higher bonus payment to secure sales, allowing them to resist increasing the base price.

Flat-priced deals for butcher-type heifers range from €4.00/kg to €4.05/kg, while O grade Friesian steers are moving flat from €3.80/kg to €3.90/kg.

IFA Livestock Committee chairman Henry Burns said: “The factory tactic of cutting prices every week to force farmers out with stock has ran out of road.

“Farmers selling cattle should insist on 5c/kg to 10c/kg over the factory quotes and dig in hard to get prices back up.

“Some factories increased their base price for steers to €3.95/kg and €4.05/kg for heifers, just to hold on to stock.”

Higher cow kill

The lift in the weekly kill is stemming from cow throughput increasing about 500 head to 6,174 and 320 more bulls over 24 months processed.

Factories are anxious to maximise cow throughput to underpin falling prime cattle supplies.

P+3 grading cows continue to trade in the main from €3.25/kg to €3.35/kg, with O grade Friesian cows selling to a high of between €3.40/kg and €3.50/kg.

R grades are trading from €3.50/kg to €3.65/kg, with heavy U grade cows selling to a top of €3.70/kg in specialised plants. As in the case of heifers, agents are very active in mart sales to source slaughter-fit cows.

Bulls steady

The bull trade has changed very little in recent weeks, with throughput remaining low at about 1,700 head.

Quotes for R and U grade bulls range from €3.90/kg to €4.00/kg, with a 10c/kg premium being secured by specialised finishers.

Bulls less than 16 months of age and traded on the grid are being offered a base of €3.90/kg. A word of caution to sellers is to check carcase weights and fat cover required payable before finalising deals.

Pressure on NI trade

Northern prices have reduced 2p to 4p on the week, with the U-3 base quote falling to £3.16/kg (€4.51/kg) to £3.18/kg (€4.54/kg).

Reports also show plants are continuing their stance of greater resistance to deals above the quoted price. Numbers in the north are being driven by large culls of dairy cows, with 1,967 cows slaughtered last week.