Factories continue to talk the talk about prices needing to come back but agents are instructed to get more numbers

Irish Independent

30-04-2025

The processors got the message out that prices were coming back and that everything would have to go on the grid, and this was followed by a fall in quotes of around 20c/kg two weeks ago.
Last week, however – despite threats that quotes would fall further – quotes for bullocks and heifers stayed put at €7.40/kg, and base prices remained at €7.50-7.70/kg.
One agent said that while factories are still talking the trade down, 'a lot of what they are saying is them just trying their case because in reality they need all they can get'.
In poker, half the battle is sussing out the mental strength of your opposition. You do this by introducing uncertainty. Play hard and see who folds.
The factories upped the ante by pulling prices two weeks ago and threatening further pulls, in the hope that a certain proportion of fatteners would 'fold' and sell without too much fuss.
Given the level of investment, it currently takes to buy stock for finishing, the factories' strategy of trying to 'frighten the bejaysus out of men', as one agent commented, prompted a surge in farmers turning up with jeeps and boxes at factory gates.
Some bigger finishers also chose to move a share of stock close to the knife a week or two sooner.
However, these finishers have been making money on the back of a rocketing market since last November, and that has made them pragmatic in deciding to sell – to reduce risk and protect those earlier profits.
Fatteners in the south were being told last week that if they didn't take the grid price on offer (€7.50-7.70/kg) they would have to take a less this week, and even then, there was no guarantee they would be killed this week.
While this strategy had some success for the factories last week, it's hard to see how it will work for much longer.
By the end of the week,agents were being told to get more numbers.
Over the weekend, despite all the talk of factories only paying on the grid, flat prices were on the table, especially where bigger numbers of Angus were concerned.
Deals of up to €8.10/kg flat were agreed in the west and midlands for mixed loads of Hereford and Angus, with €8.00/kg flat for continentals reported, while €7.40-7.50/kg was offered for Friesians.
Interestingly, the best flat price I heard concerned a change in tactics at one plant, who succeeded in acquiring a large number of heifers from under the competition's nose at €8.20/kg.
There is no change in quotes for bulls from 16 to 24 months, with U grades continuing on €7.70/kg and Rs on €7.70/kg.
Cull cow quotes for O grades range from €6.40-6.60/kg, with better P grades at €6.40/kg. Again, however, flesh cover and numbers matter, with €7.00/kg reported where the stock qualified on both counts.
In summary, while factories continue to talk the talk about prices needing to come back and putting cattle on the grid, their quest for numbers continues to be of paramount importance. Meaning farmers are winning in their battle to sell better flat.