Reduced numbers in the supply chain are at long last filtering through to small increments in the finished beef trade with many of the main slaughter houses having to bump up the prices offered this week.
The trade for prime cattle has been falling since early March when the All Steer average peaked at 508p per deadweight kg. Since then, prices dipped as low as 470p at some abattoirs which in turn were 20-30p below the prices paid in May and June 2023.
However over the past few weeks values have slowly but surely started to head in the right direction.
Latest figures for the week ending July 7, show the All Steer average in Scotland increased by 5p to level at 486.8p while the All Heifer value improved by 2p to 479.9p. Young bulls also saw a lift on the previous seven days, levelling at 474.6p – up 2p.
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“Numbers are tightening and are expected to fall further going into the third quarter of the year, which should help the beef trade,” said Neil Shand, chief executive of the National Beef Association, who added that the wet weather in most parts of the UK has hindered sales.
“If we can get some drier, warmer weather which is more favourable for barbecues, coupled with reduced supplies, demand should increase further,” he said.
Demand has already picked up in other parts of the country, with slaughterhouses in the North of England paying up to 5p per kg more for clean cattle compared to those in Scotland.
Furthermore, increased demand for Aberdeen Angus beef has seen the premium rise as much as 20p per kg, with many abattoirs in Scotland paying £5.00 per kg this week.
Prices are also firming in Northern Ireland and in the Republic with last week’s prices for an R3 steer quoted at 480p – up 2.7p per dwkg on the week while the All Steer average price improved by 0.6p to 470.2p. Heifers hitting the R3 grade in the province stood on at 478.4p/kg.
The deadweight trade for cows remains strong across the Irish Sea too, rising 7.4p per kg on the week, with O3 grading cows up 3.7p/kg at 355.1p/kg.
Prices in the live ring have also improved with Caledonian Marts’ sale at Stirling averaging in excess of £3 per kg for the last two weeks on the trot. Last week's sale levelled at 312p and 307p for bullocks and heifers respectively.
While demand for prime cattle is seeing an uplift, the same cannot be said for the lamb trade which with increased numbers coming forward are hitting a falling market.
Last week just shy of 37,000 lambs were slaughtered through GB abattoirs to average 678.7p per kg – down 68p per kg for an extra 3.6%.
Prices are also slipping through the live ring with many centres fast approaching £3 per kg.
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