Bull beef prices to remain low……..

FINISHERS of young bulls disappointed at the fall in prices are unlikely to see an immediate recovery, and further falls cannot be ruled out.

Meat & Livestock Commission averages show the steady slide in values throughout last month from 92p/kg in late April to 88p/kg last week.

However, this masks the impact on livestock markets in the north west where one purchaser supplying a major retailer withdrew from the ringside.

Traders suggest two retailers, Asda and Morrison, have now backed off bull beef possibly as a response to rising stocks and a preference for steer beef.

No explanation had been received from the companies as FW went to press.

But the problem will be compounded by a rise in the number of bulls being finished, suggests Richard Turner of Gisburn market where trade has been hit. He believes suckler producers may react to the price fall by increasing calf castration to access the wider market for steers.

That concerns the National Beef Associations Robert Forster, who points out that the specialist bull beef market is finely balanced between supply and demand.

If confidence is lost and fewer entire males are reared, sucklermen would be committing themselves to tighter margins and longer finishing times.

“Bull beef is an efficient system. Suckler men can get animals away in 12-14 months with a beef subsidy claim under their belts rather than look at keeping steers another winter,” explains Mr Forster.

A swing towards spring-calving will also have increased supplies pushing prices down further.

Auctioneers add their words of caution. Alistair Sneddon of Bakewell market says:

“As ever, there can be some hysteria when prices fall. One customer may have gone out the market and that will upset the balance for a while, but look what is happening further down the chain. Other buyers are still there.”

Independent retailers and caterers are sticking with the product.

Several markets this week saw prices for the premium and prime bulls recover by 4-8p/kg. But commercial sorts – which account for at least half the current trade – were still lack-lustre.

MLC economist Jane Connor says it is too early to suggest a recovery.