Beef and lamb prices slide as festive demand eases

As final Christmas orders are fulfilled by processors, demand for beef and lamb has dropped back in line with seasonal trends.

Beef

GB deadweight cattle prices averaged 406.7p/kg, down 2.5p for the week ending 11 December.

Cattle prices remain high compared with previous years, but the all-prime average has declined for three weeks consecutively, and this may continue to into the new year.

Typically, the first half of the year is when processor demand is more weighted towards manufacturing beef and cows, according to AHDB.

See also: Advice on feeding yearling heifers to calve at 22-24 months

Steers averaged 217.5p/kg at Market Drayton Market on 15 December, while heifers totalled 218.1p/kg and young bulls averaged 201p/kg. Prices were down across all the major prime categories on the previous week.

In the market’s weekly report, auctioneer Bernie Hutchinson said: “As predicted, the trade has eased both liveweight and deadweight as more a result of uncertainty than demand and supply issues. Trade seems to have affected plainer and leaner types, as meated cattle still selling to a premium.”

Lamb

The GB liveweight SQQ averaged 271.9p/kg, down by 7p for the week ending 15 December.

Trade at auction markets has been reportedly mixed between regions, with some dropping back due to Christmas primestock shows supporting trade during the previous week.

Deadweight prices averaged to 631.8p/kg, up 13p for the week ended 11 December, which follows that week’s trend for liveweight.

Commenting on the live price easing, Rebecca Wright, red meat analyst at AHDB, said: “Lamb prices have slipped slightly this week, reflecting that the Christmas kill will now be winding down.

“While this is a week-on-week downwards movement, prices are by no means low, standing nearly 60p above year-earlier levels.

“If we go back to before 2021, prices are even above what we would usually see in the spring.”

Export demand

Traditionally, UK demand for lamb eases after the Christmas period and prices are expected to be more reliant on export market to Europe in the short term.

Lamb prices on the continent are high, with EU deadweight heavy lambs up by 20% year-on-year to average €7.35/kg (£6.26/kg) for the week ending 12 December, according to the European Commission.

Tight supply

Defra’s latest monthly slaughter statistics for November have shown supply to be tight for both beef and lamb.

UK prime cattle slaughterings in November were down by 5.1% at 166,000 head compared with November 2020. Beef and veal production dropped by 8.3% year-on-year to average 76,000t.

UK clean sheep slaughterings averaged 1.122 million head, down by 11% on the same month last year. Mutton and lamb production dropped back 10% on November 2020 to total 25,000t.