It’s been a long time coming, but the All average price for steers and heifers sold deadweight in Scotland is now more than £5 per kg on the back of reduced supplies in all areas.

The fall in the number of cattle available to be killed has also forced the processors to increase the base price for all R4L cattle sold on both sides of the Border to £5 per kg plus.

Furthermore, latest figures show the average R3 young bull price in Scotland has hit £5 per kg dead, with steers and heifer of the same grade making 509.4p and 509.5p, respectively.

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This compares to the same cattle sold in the south of England which averaged 505.0p and 502.9p, while those in the Midlands/Wales are making 500.4p and 500.8p. Steers and heifers in the North of England with R3 grades cashed in at 506.9p, with the common denominator in all areas being the fall in the number of cattle available.

Overall, steer, heifer, young bull and cow numbers have been down 4.6%, 5.3%, 27.8% and 7.1%, respectively on the week.

More importantly, the improved prices paid for finished cattle looks set to continue for much of the rest of the year, according to Neil Shand, chief executive of the National Beef Association.

“The predictions always were that values would improve in the third quarter of the year, and they have been proved right when there is such a shortage of cattle available for slaughter.

“There has been a steady price increase over the past four weeks of up to 20p per deadweight kg plus and for the first time, there has been a price increase during the English school holidays.

“It shows there is real demand for British beef and the good thing is there are no clear signs of prices being pulled down in the near future,” said Mr Shand.

John Angus, head of livestock at Aberdeen and Northern Marts, also said there is a tightening of numbers of all ages of beef cattle when more ground has been put down to cropping in recent years.

However, with the north of Scotland having experienced better weather than parts of the west and south, he said that cattle are looking well.

“Our cull cow average in August was £1500 and store cattle sold the same month were £100 per head up on the year, but then they have to be when it costs so much to overwinter cattle.

He added that deadweight cattle prices have to be in excess of £5 per deadweight kg when the finishers have struggled all summer having been forced to buy stores at high end values and in turn sell them on a falling market.

Furthermore, while the processors are at last paying more for the finished product, input costs continue to rise for all producers. “One of the biggest concerns for producers this year is the price of straw when the winters are so wet in many areas which is forcing more farmers into housing their cattle,” concluded Mr Angus.