Cattle demand still sluggish
Cattle demand still sluggish
PRIME cattle prices rose slightly at the start of the week, but demand remains sluggish and margins thin.
Early slaughterings at lighter weights have all but eliminated the traditional seasonal increase in market entries. But finishers are not benefiting from falling abattoir throughputs.
On Monday the GB average was up 1p at 98p/kg, but prices varied widely between regions and markets.
In Wales the average slumped to 92p/kg, while in Scotland it rose to nearly 100p/kg.
Traders blame latest meat safety scares, offal disposal costs and imports for the poor returns. And they claim the strength of sterling relative to the Irish punt is pulling in the flush of grass-finished beef reaching plants in Eire.
There are also reports that more than 1000 live cattle a week are being shipped via Ulster for slaughter in Scotland, where their on-the-hook value is about 15p/kg higher than in the Irish Republic.
It seems, says Hereford Market auctioneer Peter Elkington, that beef finishers will have to learn to live for some time with a price ceiling of around 100p/kg.
"The fact that they are no longer prepared to pay the silly store prices we saw earlier suggests that they are taking a more realistic view of future prospects."
Quality was very variable at Wales border auctions run by Russell Baldwin and Bright, Mr Elkington claimed. Too many beasts, that did not have the optimum level of finish, were marketed because they were close to 30 months old.n
Robert Davies