A price differential on beef cattle has opened between Northern Ireland and Britain as local meat plants cut base prices to 356p/kg this week, with one plant pulling U-3 quotes below 350p/kg.

While large specialist finishers are still securing prices well above factory quotes, and other regular suppliers reporting that 366/kg to 368p/kg is still available for in-spec cattle, those with smaller numbers are taking the price hit.

However, beef prices in Britain are now running 20p/kg to 40p/kg ahead of NI on good conformation grades despite both regions supplying the same market.

Scotland

In Scotland, prime cattle are commanding prices of 395p/kg on R4L grading animals this week. In England, R4L prices range from 376p/kg to 380p/kg.

On a 350kg carcase, this makes cattle in Britain worth £70 to £140 more than the equivalent animal in NI.

Supermarket pressure

Local processors point to increased pressure from supermarkets to reduce the price of beef and an increasing supply of cattle coming on to the market.

However, closer analysis of the weekly kill shows that cattle numbers are, at best, holding steady.

Last week

Last week, the prime cattle kill stood at only 5,950 head, similar to the previous week.

Back in June, the prime kill was running well over 6,000 head per week and beef prices were typically 370p/kg.

As highlighted on p50, slaughter cattle imported from the Republic of Ireland and Britain are propping up the weekly cattle kill here.

Over the past seven days, 439 cattle were imported from the Republic, the second highest total this year, while 95 cattle came in from Britain.

But with sterling remaining weak against the euro, there is no great price advantage to be gained sourcing cattle south of the border.

Crosby Cleland

Ulster Farmers’ Union beef and lamb chair Crosby Cleland said that efforts to cut prices are concerning and out of step with markets in Britain.

He added: “Over the past month, beef prices in Britain have been quietly improving as a result of a strong demand for prime cattle.

In contrast, NI beef processors have attempted to drag prices down and take advantage of farmers struggling with poor weather. The fact that they are currently unwilling to match prices being paid in Britain shows a lack of commitment from processors to support their supply base.”

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