Buoyant beef prices edge closer to £4/kg mark

Cattle prices have risen for the sixth week in a row and the GB deadweight average is now just shy of the £4/kg mark, according to AHDB figures.

For the week ending 3 April, averages peaked at 396.1p/kg, up 4.3p/kg on the previous seven days. The average price is now 60p higher than the same week last year, and 58p above the five-year average.

All prime categories saw price increases this week, with averages for R4L steers peaking at 406.9p/kg.

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One of the factors behind the firm prices is a drop in throughputs. While numbers were up in January and February, the past seven weeks have all seen throughput down on 2020, said AHDB senior livestock analyst Chris Gooderham.

“For the year to date, we estimate slaughter to be 7,700 head (1.7%) down on the same period in 2020,” Mr Gooderham said.

In the run-up to Easter, estimated throughput fell 9.1% (3,000 head) on week earlier figures, to total 30,600 head. Although slaughter levels are traditionally down as the Easter weekend begins, the drop was larger than previous equivalent periods, Mr Gooderham noted.

Cull cow prices also rose this week, with the overall GB price lifting 2.9p/kg to average 270.6p/kg for the week ending 3 April. A year ago, cull cow prices fell 19p/kg and then remained at the lower level for a month.

As a result, prices are now 59p above the same week in 2020 and 46p higher than the five-year average.

Like prime cattle, estimated slaughter for cull cows dropped this week, down 11.4% (1,000 head) to 8,100 head.

Demand prospects good

Demand is also a huge factor in the buoyant prices, according to livestock auctioneer David Holliday at Harrison and Hetherington (H&H) in Carlisle.

Prospects for the beef trade are positive because, while supplies are tight, demand is also good and not showing signs of abating.

“With Covid-19 restrictions still in place, people have remained at home in the UK over the holiday period and sales have been strong,” Mr Holliday said.

 He suggested that once figures are finalised for this week’s sales, the GB average may well have edged over the £4/kg mark.

Prices for store cattle at H&H’s midweek sale were up £200/head on 12 months ago.

Steers averaged £1,150 with bullocks at £1,171 and heifers £1,110. But peak prices among the 585 throughput hit £1,630 twice for a Charolais and a Limousin cross.

More than 80 animals were sold above the £1,300 mark.