September 15, 2004

Irish Cattle Supplies Increase Sharply
 

Bullock supplies to the Irish factories increased by 3,000 head last week, with the throughput at 22,727 head which is the highest weekly kill this autumn. This is despite the figure still remaining over 2,000 head lower than the same week last year.

The total kill last week was up 2,600 head at 38,609 head. The total kill in the corresponding week in 2003 was 41,076. All of the indications from factories yesterday were that this week's kill will rise further, closing the difference on the same week in 2003.

The increased flow of cattle is driven by the weather change over the weekend, as well as the urge by many producers to sell ahead of any further cut in the prices and more cattle coming up to 30 months.

Prices offered for R grade animals appear to have steadied for this week at 92p/lb. But O grade prices slipped to 87p/lb at some of the factories yesterday in the knowledge that supplier resistance is unlikely with the strong flow of bookings for this week.

Producers are questioning the difference of 14p/lb between the Irish and British prices. They point out that this margin is now 50% bigger than that between Irish and British prices this time last year.

Irish beef is reported to be selling well in supermarkets in Britain though exporters maintain demand for prime cuts has eased. But the wide difference in price between that paid to Irish producers and British - 130/head on bullocks - has not been explained.

As pressure tightens on the margins now being achieved from expensive store cattle finished over the summer, the angry beef producers are stressing that "the only way to get a decent return is to have cattle scarce".