Retention hits beef throughput
By James Garner
SUPPLIES of steer beef through auction marts are down 8% on the year as producers hold more cattle on retention.
The move follows the UK governments decision to lift headage limits on beef special premium claims last year.
Data on market throughput point to more steers being held on-farm, while producers wait for BSP paperwork to be processed.
The reduction, has helped keep the market stable, says MLC chief beef economist Duncan Sinclair.
“Theres definitely been a tightening of supplies relative to demand.”
Generally, the trade is fairly flat at this time of year and this year seems to be no exception, with prices hovering about 89-90p/kg for most of the month so far.
Numbers, overall, seem to be tighter, says Premier Livestock Auctions Peter Kingwill.
“I suspect this is due to a number of reasons. More bullocks are on retention and replacements are dearer.”
But fewer finished cattle may also be due to the improving trade, he says.
It may mean finishers holding on to cattle for a bit longer before selling and buying more expensive stores.
And a better store trade may reflect greater confidence, he says. Some pointers are more positive.
“The Euro is strengthening and 41t of contaminated German beef has been found in a beef plant in Newry, Northern Ireland, which may persuade more beef buyers to stick with British.”
Store prices, which have fairly rocketed in recent weeks, may also show increased confidence.
Carlisle markets David Pritchard says this could also be because the 90-head limit has been lifted and subsidy is holding up values.
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