Margins tighten for beef finishers as abattoirs cut prices

A number of major meat processors have cut base prices for beef cattle in the past week, as more animals come forward.

Finished beef prices have been well supported throughout the past year as a result of strong demand and tight supplies both in the UK and at a global level, however with throughputs lifting, prices have started to take a hit.

GB deadweight steers averaged 642.8p/kg for the week ending 24 January, with prices now less than 40p/kg ahead of the same week last year.

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Heifers and young bulls have also dropped back and averaged 639.1p/kg and 622p/kg respectively at UK abattoirs.

Livestock marketing group Meadow Quality suggested that most abattoirs had reduced base prices by 3p/kg to 5p/kg and averaged £6.35-£6.45/kg for non-scheme cattle.

Stuart Vile, ruminant manager at Meadow Quality, said the price gap between prime cattle and barren cows was closing, highlighting ongoing carcass imbalance issues for abattoirs, with steak cuts proving an expensive product to shift.

Welsh red meat promotion body Hybu Cig Cymru (HCC) noticed that the price gap between this year and last had narrowed, but said the current average was still 182p/kg higher than the longer-term average over the latest five-year period.

HCC analysts added that the number of cattle coming forward had recorded a 3% rise on the previous week.

Scottish livestock marketing co-operative Farm Stock said the trade for prime cattle remained bearish in Scotland, with processors almost universally pulling money from the market due to relatively good supply.

However, it added that strong premiums were still available for native-bred cattle.

Figures from the Livestock Auctioneers Association show that prime cattle at auction marts in England and Wales averaged 368.4p/kg liveweight for the week ending 24 January, down by 9.2p/kg on the week.

Beef demand at retail still remains fairly strong, with GB beef sales up by almost 8% in December, according to data from retail insight body IGD.

Market specialists at Quality Meat Scotland said beef sales had exceeded initial expectations over Christmas, helping to stabilise farmgate prices in early 2026 after a fortnight of significant declines in mid-December.