Beef prices boosted by tight supply

Beef prices reached a new high this week, with the GB R4L average rising by 5.7p/kg, to 384.6p/kg. All categories recorded an increase, with the steer average up by 5.7p/kg, heifers by 4.8p/kg and bulls by 8.4p/kg.

“Cattle supplies remain fundamentally tight and demand for quality-assured cattle continues to strengthen,” said a report by AHDB Meat Services. “This strong performance has been carried over into the latest week of liveweight prices.”

Auction values for finished steers averaged 212.2p/kg – almost 5p up on the week. Heifer prices rose by 2p, to average 215.5p, with young bulls up by more than 4p to 198p/kg.

“The strong demand that is evident in the market is not limited to prime cattle, with cull cow values also on the up,” said the report. In the week to 12 March, the all-cow average reached 269.2p/kg deadweight – 5.8p up on the previous week.

Retail sales remained robust in the four weeks to 17 February, according to the latest data from analyst Kantar Worldpanel. Volume sales fell by 1%, but higher prices meant the value of purchases increased by 2%. Steak sales increased by 14%, but burger volumes fell by 35% compared to last year, probably due to the horsemeat scandal.

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