Possibility that crowded cull cow market could improve later this year

Possibility that crowded cull cow market could improve later this year.  

Cull cow prices across GB will come under even more pressure over coming weeks unless they are sold more carefully.

This warning comes from the National Beef Association which notes that British deadweight averages are already down by 20 per cent compared with this time last year as a result of post-FMD export problems.

“The British all-cow deadweight average is currently around 114p per kilo compared with 144p at the end of October last year. This amounts to an average drop in income of just over £100 per cow and the downwards pressure could increase over November-December too,” advised NBA director, Kim Haywood.

“It is clear from the relatively high prices still being paid in Northern Ireland that this drop is primarily due to the export restrictions on British beef and it looks as if problems could be compounded by a supply backlog created by slaughter disruption caused by FMD controls over August and September.”

According to the NBA around 30 per cent fewer cows were processed in August because they were held up on farm and a further 21 per cent backed up over September too.

“This is unfortunate because most, if not all, of these 30,000 cows are expected to be cleared before the end of the year and this increase in supply will almost certainly coincide with the additional heavy culling that always takes place in both the beef and dairy herds as winter approaches,” said Ms Haywood.

“If manufacturing beef exports to The Netherlands, Republic of Ireland, France and Germany were moving normally the impending supply-price squeeze would be less severe.”

“Breeders ought to know that a strong effort is being made to persuade SCoFCAH to allow more relaxed export trading from November 15th – although the committee signalled just last week that it was not prepared to move to more normal export conditions until December 15th.”

“While owners who have ample feed available might like to consider that cows sold early next year have a very good chance of being offered when the market is not only less crowded but more buyers, including exporters, will be busy too,” Ms Haywood added.

The NBA would encourage all cow finishers to talk with their processors about market demand and keep an eye on EU developments for export and EBLEX is launching a promotion campaign to increase the sales of mince and McDonalds is helping by purchasing 100% beef from Britain Isles and will increase the price offered by 5%.      

For more information contact:

Kim Haywood, NBA director.   Tel. 0131 336 1754