The British beef trade has finally turned a corner with price increases recorded across all markets. The northern trade is grabbing the headlines, with prices rising anywhere from 6p/kg to 10p/kg in the last week to 10 days.

Opening base quotes for U-3 steers and heifers have lifted 4p/kg to 6p/kg and now range from £3.20/kg to £3.26/kg. Sterling continues to gain ground against the euro and at 85.7p this equates to €3.73/kg to €3.80/kg and €3.94/kg to €4.01/kg including VAT at 5.4%.

The opening base quote of £3.20/kg is generally being offered for out-of-spec or Friesian cattle, with good-quality continentals moving freely at the higher quote. Producers with greater negotiating power are exceeding this, with returns for steers ranging from the low- to mid-£3.50s, while top prices for heifers are rising to £3.40/kg (€4.18/kg incl VAT).

The latest AHDB price report also shows increases ranging from 2p/kg to 4p/kg in Scotland and the southern and central British region. The average R4L British steer price is recorded at £3.37/kg (€3.93/kg excl VAT), while Scottish steer prices are top at £3.44/kg (€4.01/kg).

The rise in the British trade and recovery in European prices is leaving Irish prices lagging behind and mounting pressure for upward movement. In addition, to Irish prices falling behind the average, global beef prices have also moved well ahead (see pages 3 and 17).

Backlog reducing

There are some signs appearing that the backlog in supplies created by beef factory protests is slowly waning. Significant delays remain, with a quota system and preference for cattle aged under 30 months remaining in place, but some finishers are reporting greater success in getting cattle moved.

The steer base quote is unchanged at €3.45/kg, with heifers meeting price variation of 10c/kg, depending on the purchasing plant. The majority of heifers are moving on a base of €3.50/kg, but small numbers are trading at opposite ends of the market on a base of €3.45/kg and €3.55/kg.

Last week’s beef kill increased by 4,450 head on the previous four-day week. The kill is 1,201 head lower than the corresponding week in 2018.

The increase was underpinned by 1,949 more cows processed, with a sharp increase in cows being drafted of dairy farms. The higher numbers has put pressure on prices, which have dipped in cases by 5c/kg to 10c/kg.

Prices are massively variable, depending on the carcase grade and carcase weight. P+3 grading cows are trading from €2.50/kg to €2.65/kg, while P2 grading cows are trading from €2.10/kg to €2.40/kg. P1 grading cows range from as low as €1.50/kg to €1.60/kg for the poorest-quality cows to €1.80/kg to €1.90/kg for slightly better-quality cows. O grading cows range from €2.70/kg to €2.80/kg, with R grades from €2.90/kg to €3.00/kg.

Bull producers are in the same position as farmers with overage or overweight stock and continue to face delays in getting cattle accepted for slaughter.

R grading bulls are trading from €3.40/kg to €3.45/kg, with U grades from €3.50/kg to €3.55/kg. O grading bulls range anywhere from €3.15/kg to €3.30/kg, with bulls less than 16 months and trading on the grid moving on a quote of €3.40/kg to €3.45/kg.

The Department of Agriculture recorded price table has a new addition with Traditional Meat Company. It is a statutory requirement that once a plant has annual throughput exceeding 20,000 head that their prices are recorded.

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