After a number of months when local beef prices have tracked the price on offer in Britain, with differences generally around 5 to 10p/kg, a wider gap has emerged in recent weeks, particularly for some of the higher conformation grades.

Beef prices offered at local plants have fallen by as much as 15p/kg over the past month, with base quotes steadying on 348p to 352p/kg.

Official prices paid on U grading steers averaged 358p/kg last week.

However, prices for U grading steers in Britain, while also coming under some downward pressure, are typically 378p to 380p/kg depending on the region, with higher prices available in Scotland.

This makes the value of a 380kg U3 carcase in Britain worth an extra £76 to £83 compared to a similar animal slaughtered in NI this week. A similar price differential exists on heifers.

It means that more cattle from NI are now moving to direct slaughter in Britain. While the numbers remain relatively small, 248 finished cattle have been taken across in the last four weeks. The total for 2018 to date is up 15% on the same period last year.

Mart trade

The mart trade for live cattle remains variable. Good-quality forward stores remain steady, with prices of 200p to 210p/kg paid in several marts.

Prices for plainer cattle and lighter stores have eased in recent weeks, with 170p to 190p/kg more common.

In particular, the live trade has come under greater pressure at marts operating in the eastern half of NI where the continued drought is hindering buying demand.

As such, there have been reports of farmers from Co Down selling livestock at marts in the west and north where there is less pressure on grazing.