The cattle trade firmed this week in response to on-going tight supplies both in Ireland and key export markets. Trade is also being helped by the euro remaining weak against the pound which has helped boost our competitiveness.
Quotes for R grade steers under the Quality Payment System are making from between €4.10 to €4.15/kg. Heifers are still being quoted at between €4.20 to €4.25/kg. These prices exclude the 6 cent on in-spec Quality Assured stock. Similarly cow prices have firmed, with O grade animals typically making between €3.64 and €3.75/kg.
Cattle supplies at export meat plants for the week ending 12th May stood at 24,200 head, which was around 5,000 head lower than the corresponding week in 2011. To date, cattle supplies are running almost 14% or 82,100 head below last year's levels.
In the UK, the beef trade is being helped by on-going tight supplies. A reasonable trade is being reported for round cuts, while best trade continues to be for forequarter product reflecting on-going lower than normal temperatures which are influencing consumer preference.
Reported cattle prices from the AHDB have increased slightly with GB R4L grade steers averaging at Stg 344.8 pence/kg dw (equivalent to 431.2 cent/kg dw) for the week ended 12th May.
On the Continent, trade across most of the key markets remains steady, reflecting better demand for steak cuts and ribs in response to price promotions being used to help shift any surplus stocks that exist. Otherwise, demand for forequarter product showed little change as the seasonal shift towards edges towards hindquarter cuts.
- In France, German cow hinds are now making between €4.50-4.60/kg, Irish steer hinds are making €5.60/kg.