Auction markets see uptick in buyers as heifers near £4/kg

Exceptional demand for beef has led to an increase in the number of buyers at Scottish livestock markets, as processors look to secure greater numbers of prime cattle.

Heifers have climbed to average 397p/kg liveweight at Scottish auctions marts in mid-March, while steers stood at 384p/kg.

The Institute of Auctioneers and Appraisers in Scotland (IAAS) says prices are up by 25% and many cattle are selling £400 a head more than the same month last year.

See also: Animal feed in high demand as livestock margins improve

Alan Hutcheon, IAAS president and director and Aberdeen and Northern Marts, says cattle prices had been higher than ever and this would not have been possible without the live ring.

“The power of the live auction is that it sorts supply and demand and there will never be a fairer price than the one on the day at the mart.

“Everyone is looking for stock, and we’re seeing more choosing to sell at auction and new buyers at marts across Scotland, some up from England,” he said.

Neil Wilson, executive director of IAAS, suggests the higher prices have been needed for a long time and says between £3.50/kg and £3.90/kg was required for suckler beef to break even, which has meant many farmers had been losing money.

“The value of an artic load of finished cattle leaving the farm is now more than £100,000 – it doesn’t feel that long ago that it was around £60,000,” said Mr Wilson.

“This difference is substantial and very encouraging for the trade.

“However, there does need to be an element of caution not to rush heifers off for store markets, and to keep older cows and ewes longer, to ensure that core suckler and breeding ewe numbers are kept up.

“Otherwise, the demand for Scottish livestock won’t be met by supply for the long term.” 

Supply

The main price driver in the UK continues to be low supplies, with prime cattle numbers remaining incredibly tight and slaughterings down by 5% in February alone, compared with year-earlier levels.

Roughly 130,000 fewer finished cattle are likely to be available during 2025, with industry forecasts suggesting prime cattle slaughter will fall below 2m head.

The UK is not alone though, with prime cattle slaughter in Ireland forecast to be down by 5% in 2025.

Figures released by the British Cattle Movement Service also show there are fewer youngstock aged under two years old currently on farm, which will continue to keep domestic beef supplies tight for the foreseeable future.