Factories are finding it increasingly difficult to meet their desired level of throughput. Last week’s kill was recorded at 34,660 head, which is 1,996 head back on the corresponding week in 2019.

This is despite factory agents working hard to try to source additional numbers.

Their efforts are being hampered by prices being slow to rise, despite the extra appetite and producers digging in their heels and reluctant to move cattle at current price levels.

The majority of steers are trading on a base of €3.60/kg, with heifers split on a base of €3.60/kg to €3.65/kg.

There are some reports of specialist finishers and producers handling large numbers having some luck in securing a 3c/kg to 5c/kg higher base.

Looking at the latest Bord Bia beef price dashboard shows Irish steers averaging €3.57/kg.

This compares with an EU young bull price of €3.67/kg, with the differential tightening in recent weeks, and a UK steer price of €3.96/kg.

The 39c/kg differential between Irish and UK prices equates to €140 on a typical 360kg carcase.

Irish prices are running 4c/kg behind 2019 levels, but the difference in supplies must be remembered and 27c/kg behind comparable 2018 levels.

Bord Bia’s composite price analysis graphs are detailed on page 71. The average Irish price for all animals is recorded at €3.32/kg for the week of Saturday 11 January.

This compares with the export benchmark price of €3.42/kg.

The differential has narrowed from over 20c/kg in mid-December to 10c/kg at present on the back of a combination of improved Irish prices and a slight weakening in the EU export benchmark.

The strength in demand is very evident in the mart cow trade, with factory agents competing with greater intensity in recent days.

P+3 and O grading cows are slowly increasing in price, but a wide differential remains, depending on the negotiating power of the seller.

P+3 grading cows are trading on average from €2.70/kg to €2.75/kg, but 5c/kg to 10c/kg higher is being secured.

O grading cows are trading from €2.85/kg to €3.00/kg. R grades are slowly moving upwards, but not at a pace that reflects the live trade, with prices ranging from €3.05/kg to €3.20/kg on average.

Bull prices are steady, with some factories continuing to favour offering allowances on weight rather than increase prices.

U grading bulls are trading on average from €3.55/kg to €3.60/kg, with some deals rising to €3.65/kg.

R grading bulls average €3.45/kg to €3.50/kg, with some prices 5c/kg higher. O grading bulls range anywhere from €3.20/kg to €3.35/kg, with some reports of €3.40/kg paid for top-quality O grades.

Bulls less than 16 months and trading on the grid are selling from a base of €3.50/kg to €3.55/kg on average.

Northern Ireland

Northern Irish prices are steady, with supplies improving.

A high percentage of steers and heifers are trading on a U-3 price of £3.36/kg to €3.40/kg or €3.98/kg to €4.02/kg at 84.5p to the euro and €4.19/kg to €4.24/kg including VAT at 5.4%. Top prices for heifers are rising 2p/kg to 4p/kg higher.

Meanwhile, the latest Department of Agriculture figures for the week ending 19 January show calf exports to Spain starting strongly.

There were 402 dairy-sired calves exported last week and 25 beef-sired calves. It brings the total number of calves exported to Spain in 2020 to 669 dairy-sired calves and 108 beef-sired calves.