Over the past few weeks, the price of beef has been slowly but steadily increasing. This is due to a series of factors including export demand, reduced supply due to weather and logistical challenges, and the impact of COVID-19 on processing plants. With farmers and industry experts alike keeping a watchful eye on the market, many are turning to factory quotes as an indicator of where prices may be headed in the coming weeks and months. In this article, we take a closer look at the rising beef prices and how factory quotes factor into the equation.
The factory prices for beef have continued to rise this week, with top quotes increasing by 5c/kg. However, some outlets are quoting the same prices as last week. Due to Good Friday and Easter Monday, many factories are operating four-day kills this week and next, but a few have stated they will be killing cattle all five days. Short kill-weeks may reduce pressure on procurement staff to fill out kill sheets, leaving some processors hesitant to increase prices paid for cattle. Despite this, one processor in Co. Donegal has offered €5.40/kg for heifers weighing between 300-400kg, leaving €5.60/kg for heifers grading R=3=. Factories are quoting prices ranging from €5.30-5.35/kg on the grid this week for heifers, while steers are being quoted at €5.25-5.30/kg. Breed bonuses for Angus and Hereford cattle have increased from 20-30c/kg. Cow prices remain strong, with factories willing to negotiate on price for groups of finished cows. The average price paid for U=3= cows was just short of €5.30/kg, and the average price paid for R=3= cows was just under €5.20/kg in the week ending Sunday, March 26. Under-24-month bulls are being quoted at €5.40-5.45/kg for U-grade and €5.30-5.35/kg for R-grade, while O-grade bulls are being quoted at €5.10-5.15/kg, and P-grade bulls are being quoted at €5.00-5.05/kg.
In conclusion, the price of beef is on the rise, and this trend is expected to continue in the coming months. While there are a number of factors contributing to this increase, including global demand and supply chain disruptions, it is clear that factory quotes have played a key role in setting the market value for beef. As farmers and ranchers look to maximize their profits in this environment, it will be important to stay up-to-date on industry trends and developments, including changes in factory quotes and other pricing metrics. Ultimately, by staying informed and adapting their strategies as needed, cattle producers can position themselves for success in this evolving market.
