Clearance of unsold beef stocks already paving way

Clearance of unsold beef stocks already paving way for stronger  slaughter cattle prices.

The National Beef Association has been told that prime cattle prices are expected to strengthen from mid-August as slaughterers begin to build up chill room stocks in preparation for heavier retail beef sales in autumn.

And it expects this to bring the recent, over exaggerated, fall in the market value of all commercial cattle to a juddering halt as long as feeders are careful about the number of animals they sell over the next two to three weeks.

“Traders have told us that a concerted move to sell off a nationwide overload of unsold steak and topside was initiated this week to make room for the forequarter beef that traders must soon begin to salt away for autumn,” explained NBA director, Kim Haywood.

“Once the backlog is cleared cattle are expected to be back in demand again, despite the inevitable seasonal increase in numbers, and most of the major buyers accept that prices have come back too hard, too quickly, and it is important that an upwards correction is made.”

Last week there was a range of at least 25p per dwkg between prices paid by the major buyers of standard quality cattle in England and Wales, with the lowest, 245p, reported to have been offered by Southern Counties.  Prices in Scotland are under less strain but those in Northern Ireland are under heavy pressure too.

“Now would be a good time for feeders to hang on to animals that could still be fed to slightly heavier weights without losing quality,” said Ms Haywood.

“And finishers who are hurrying cattle through to ease cash flow problems might like to consider that grass is cheap and the market is expected to strengthen.”

“It would certainly help to straighten prices out if less cattle came forward while surplus beef stocks are being cleared and slaughterers are still waiting to launch their new, mid-August, buying programmes – or feeders took more time to discover who is paying most for their type of animal and divert their stock towards them.”

"There are strong feelings within significant sections of the trade that the recent price drop has gone too far and the market needs to be stable over the next two weeks because the volatility is upsetting everyone except the handful of companies still doing their best to drive prices even lower,” Ms Haywood added.

For more information contact:

Kim Haywood, NBA director.   Tel. 0131 336 1754