There was a lot of speculation last autumn that increased feed costs would see fewer farmers involved in winter finishing, but it seems there was no real fall in the numbers of cattle going through the processing system.
hile Bord Bia predict that throughput at the factories may fall by up to 60,000 in the first half of this year, so far supplies have been broadly in line with 2022.
Bord Bia data shows that to February 25, the numbers of prime stock, young bulls, steers and heifers slaughtered was down 6,333 or 3pc on 2022.
This reduction was driven primarily by a 12.8pc or 3,791 fall in the number of young bulls processed.
However, when you add in the increase in cull cows slaughtered — 63,539, up 5,327 or 9.2pc — and the 12,866 other cattle processed including older bulls, the total reduction is less by just 1,223 or 0.4pc.
In Britain, the total prime cattle processed to February 25 is up 3,256 or 1.3pc to 246,669. Their young bull numbers have fallen 16.8 to 13,545.
Britain’s Agriculture and Horticulture Development Board report in their analysis of their beef trade with Ireland: “With the UK making up 43pc of the total value of Irish beef exports at €1.1bn in 2022, any change in production or trade across the Irish sea could impact domestic prices here.
“With tight supplies expected globally in 2023, predominantly due to reduced production in the northern hemisphere, prices are set to remain historically high…
“Looking forward, could we see Ireland try and diversify its beef export markets by moving some product away from well-established supply chains, as wider global disruption in the beef market causes volatility and opportunity?
“Or will the slight declines in EU production continue to hold a buoyant trade and offer more value for product? These factors remain key watchpoints as we move further into 2023”
On the that analysis the outlook looks very positive.
Here at home, factories’ attempts to stamp their authority on pricing over the last month appear to have come a halt with prices effectively increasing last week by 5c/kg. As one agent stoically told me: “They (the processors) want to pull prices but they also need cattle.”
Both bullocks and heifers are still being quoted at €5.20/kg but are actually making €5.25/kg, with some of those heifers moving once again at €5.30/kg, especially in the west and the midlands.
Quotes in the south for young bulls under 24 months are in the €5.25-5.35/kg range for Rs and Us but further north actual prices are €5.35-5.45/kg.
Quotes for cull cows appear to be steady, with O grades on €4.70-4.60/kg and better P grades €4.50-4.60/kg.
Interestingly I had a report of €5.10/kg flat being paid to specialised finishers for big numbers of well-fleshed O grades as the number of culls in marts reduces.
