Everyone, including Dairy Farmers should push.....

Every farmer who sells slaughter cattle this week should be pushing hard for a huge jump in the purchase price following a supply driven shortage in the Republic of Ireland (ROI) where R4 steers are trading from a base of 235p per dwkg and beef cows up to 206p compared with just 195p and 156p immediately before Christmas.

This strong advice comes from the National Beef Association which last week noted a general lift in prices offered in the UK but says it was nowhere near enough now that there is a genuine shortfall between cattle availability and cattle demand and the value of Irish stock, which accounts for 58 per cent of the UK’s imports and 13 per cent of UK consumption, is suddenly greater than any domestic animals – including those in Scotland.

“The slaughterers who are contracted to supply the biggest supermarkets and are faced with massive weekly orders that now look difficult to fill, are already sweating hard,” said NBA director, Kim Haywood.

“Last week the main supermarket processors in England and Wales grudgingly moved to a base price of around 219p for steers and heifers and today (Monday 14th) were expected to come out at about 225p.”

“Similar upward moves are expected in Scotland and Northern Ireland this week too but the NBA is certain that if finishers play their cards properly, and take advantage of there being no rush of slaughter cattle fighting to get on the market, they will be able to secure well over 230p for standard quality steers and 235p, or more, for heifers with even better prices emerging in weeks to come.”

And according to the NBA the benefits of this long awaited swing in the producer’s favour will cover everyone selling cull cows, including the dairy farmer, as well as breeders supplying a rapidly improving store cattle market too.

“Beef cross cows likely to grade 03 or 04 should not be selling for less than 200p and because good dairy cows are worth about 185p too it is critical, that suppliers work hard to secure their true value as well,” said Ms Haywood.

“This market renaissance is not a one day wonder. It follows the near depletion of finished cattle stocks in Ireland until grass cattle come through in May – and even then numbers will be short because 204,000 cattle were exported live from the ROI last year.”

“On top of this UK prices will continue to be driven upwards by the record standing of the euro, now trading at 75p, against the pound which makes imports dearer and encourages export sales.”

“The market for forward stores has already lifted by £50-£70 a head since the New Year as feeders stock up in anticipation of even more supply pressure being forced on companies servicing Asda, Sainsburys, Tesco and Morrisons which are already making urgent moves to make sure they are not left without cattle in the months and years to come.”

For more information contact:

Duff Burrell, NBA chairman.   Tel 07764 409027

Editor’s Notes.

Confirmed deadweight prices are always about two week behind the actual market.
For the week/ending January 5th the Livestock and Meat Commission in Northern Ireland confirms the following R4 steer averages.

Republic of Ireland    213p

Northern Ireland       208.8p

Scotland               223.6p

Northern England       222.4p

Midlands and Wales     206.3p

Southern England       211.6p

 

The NBA’s estimated provisional figures for w/e January 11th are:

 

Republic of Ireland around                237p

Northern Ireland around                   216p

Scotland around                           229p

Northern England                          228p

Midlands, South and Wales around          219p