Study market trends for improved ex-farm prices

According to Grant Anderson, commercial sales manager and team leader at Harrison and Hetherington, prices for store cattle are good and numbers remain tight, hence farmers should take advantage and sell ahead of the usual August/September rush for the same margins.

Across its eight marts in Scotland and northern England, store cattle have averaged £1400 recently and prices for calves, stirks and young bulls have lifted. Furthermore, while prime beef cattle values have dipped with the poorer weather, prices remain relatively good.

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Grant Anderson commercial sales manager and team leader at Harrison and Hetherington

“The less than summery weather has definitely impacted beef sales, but prices are still good and supply is likely to tighten again.”

Like farmers, the company, which is headquartered in Carlisle, uses the mart data available through the Institute of Auctioneers and Appraisers (IAAS) to compare trends year on year:

“The analysed mart data is a really good resource to see when the prime time to sell is for both cattle and sheep. It also tells you what breeds are producing the best returns.

“It’s combining this with what’s happening in real time that farmers use to make key strategic decisions on when to buy and sell as well on their feeding and breeding management.

“We are seeing our customers taking a much closer look at costs and returns. The most common question we get in the mart is ‘What’s trade like this week?’. Farmers could consider selling differently this year and get their cattle to the mart over the next two-three weeks for margins that will match the same six weeks later.”

Mr Anderson added that lamb has seen some real highs this year due to various ethnic festivals coinciding with Easter but he warned against selling light.

“It’s been a perfect combination of key celebrations rolling into one another and we’ve seen lambs go for £50-100/head more than we’d ever imagined, but there’s now a bit of a lull in the trade so buyers are looking for quality as opposed to numbers.

“This is hard when farmers are keen to get lambs off farm for much-needed income but we are just not seeing the prices unless they are well finished. Lambs should be at least 43kg to get the maximum returns.”

He added that there will be fewer lambs available this year due to the bad weather and disease affecting lambing, which may point to reduced numbers again next year.

There is also a high cull value in the ewes.

“After a bad lambing weather-wise and Schmallenberg disease in the south, some farmers have taken advantage of the high cull price, and the opportunity to farm less sheep.

“They are watching the market and the impact of the cost of living and taking a hard look at their businesses.

“We are seeing some key decisions being made, some of which include reducing flock numbers, and this means supply will be tight. It will be interesting to see how the markets develop but as these different impacts come together, the marts will have an even greater role to ensure sellers and buyers get the best price on the day,” said Mr Anderson.

He encouraged producers to look at market trends and to consider selling finished lambs outwith the normal time of June-August, when there is usually a glut on the market. Similarly, he urged beef farmers to look at the market data from the past two or three years and alter their systems to sell cattle when sales are at their peak.

“Mart data is not only a vital record of trends but it shows the huge contribution that the auction marts make to the agricultural sector, the big business it generates, and the significance of this to farming and associated businesses.

“We hope the Scottish Government will embrace this as it makes policy decisions going forward and recognise the role marts play in the economy.”