Finished cattle prices in Britain are up by as much as 10p/kg on last week, bringing U3 grading cattle to a base of 380p/kg to 385p/kg in Scotland and the north of England.

However, there are reports of deals up to 390p/kg for top conformation grades meeting market specifications on weight and fat class.

This makes a 380kg carcase worth an extra £95 compared with the same animal in NI this week.

Prices have risen due to a combination of factors. Firstly, heavy snowfall over the weekend has disrupted the movement of finished cattle to abattoirs in some regions.

Also, supplies of finished cattle in Britain have tightened in recent weeks.

With a significant proportion of fat cattle purchased through the live trade, competition for slaughter cattle has intensified, leading to increased prices.

Cow trade

Robust demand for manufacturing beef is also behind the price lift, with the value of cull cows increasing significantly.

Traditionally, cull cow prices in Britain lag NI by 10p/kg to 20p/kg, but the latest prices from Britain put R grade cows at 302p/kg to 308p/kg, which is just behind the 310p/kg average paid for R3 grade cows in NI last week.

As a result, the flow of cull cows imported from Britain for slaughter at plants in NI has slowed. Direct imports for slaughter were running at 180 to 190 head during February. Last week, the number fell to 138.

Prime beef

While prices for prime beef in NI have edged up in the past fortnight, they are now lagging behind those paid in Britain on U and R grading animals. Prices for lower grading cattle are more evenly matched.

Finishers report that local plants are working from a base of 356p/kg to 358p/kg this week with deals of 360p/kg to 362p/kg common.

Farmers with bigger numbers of in-spec cattle are securing 364p/kg to 370p/kg.

With a price differential opening between NI and Britain, it creates an opportunity for cattle agents to ship slaughter-fit cattle to plants in Scotland and England.

To date in 2018, exports have been low, with only 544 cattle exported so far this year, and none in the last two weeks.

Marts

In local marts, cattle numbers continue to tighten which is increasing buying competition. Prices for continental steers over 600kg are averaging 216p/kg.

This makes a 680kg steer worth £1,468, an increase of £40 on the start of the month. Heifers over 600kg are at 211p/kg with plainer cattle averaging 196p/kg.

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