Tight margins for UK beef sector as cattle prices decline

Finished cattle prices have struggled to hold ground this spring, with deadweight values slipping by almost 80p/kg in the past year.

Several meat processors have confirmed price cuts of 10p/kg in the past week alone, with talk of cold stores being filled and reduced demand at retail, as beef struggles to compete with cheaper proteins.

See also: Farmers share £265k as ANM turnover jumps 20% to £13.8m

Quality Meat Scotland (QMS) reports that high retail prices for beef continue to restrict sales volumes, but retail prices are starting to dip now that farmgate prices have cooled.

This time last year finished cattle prices were up above £7/kg deadweight and two-year-old steers were selling as stores for £2,228/head.

Beef finishers who had bought store cattle at the top of the market last year may now be struggling to break even, after factoring in on-farm costs.

With finished prices now trading at close to £6.20/kg deadweight, a 360kg carcass would equate to £2,232 a head, almost £300 a head less than this time last year.

Jonny Williams, managing director at Farm Stock, said prime beef markets had come under significant pressure after several months of relative stability.

He added: “Despite finished cattle prices easing, the store trade has remained well-supported by cheaper cereals and large volumes of discounted feed potatoes.

“Hopefully, we now see some stability around the 600p/kg mark. Longer term, the outlook for beef remains positive, with multi-year herd reductions continuing across both the US and Europe.”

The livestock marketing co-operative is celebrating 30 years in business, sourcing cattle and sheep from multiple farms to provide processors with consistent numbers while maintaining the independence of individual producers.

Chairman Robert Hall said: “Farm Stock’s priorities remain clear: helping members by canvassing outlets to maximise returns, managing risk, and remaining competitive in a rapidly changing agricultural landscape.”

Cattle supplies

UK beef production was up 1.3% at 226,000t in the first quarter of 2025, according to Defra figures, with prime cattle slaughterings reaching 500,000 head.

Iain Macdonald, QMS market intelligence manager, said: “A stronger calf crop across GB, supported by lower mortality in spring 2025, should feed into an improved supply-side picture by summer 2026.

“Meanwhile, increased calf numbers in England and Wales could result in softer competition for stores at spring sales from English buyers.”

However, he added that store prices had made a strong start to 2026 at Scottish auctions, and the numbers of store calves in Scotland could be very tight.