Cull cow base tipped to narrow gap with prime cattle

A 140p/kg gulf between cull cow and prime cattle base prices is expected to close over the coming weeks as processors seek cheaper cuts.

Trade sources predict a 430p/kg deadweight base cow price from processors very soon, and a 20p/kg lift on meaty suckler cow carcasses.

R3L base price averages have already lifted by 20p/kg to 420p/kg since late October.

See also: Festive trade on fire at Christmas fatstock shows

Expectations are for prime cattle prices to hold, while the typical January consumer belt tightens and school and canteen orders stoke demand for cow beef.

Another reason why traders are betting on cows to go dearer is that cow beef has looked competitively priced compared to the red-hot prime cattle trade.

Last November and December, when the prime beef price was 495-500p/kg deadweight, cows only traded at a 108-119p/kg discount to prime cattle, a gap 20p/kg less than current levels.

Traders say cow beef on the hook needs to catch up with cow beef on the hoof.

Live markets have seen 200p/kg for better fleshed beef cattle this winter, and many dairy entries are averaging 180p/kg.

Best Friesian cows have broken the 200p/kg mark in the live ring in recent weeks at Lancaster.

North West Auctions’ latest sale saw dairy producers achieve a cull cow average of 182.5p/kg.

Darlington had Limousin cows to 290p/kg last week (16 December) and saw an entry of 130 cows level at £1,236, or 190p/kg.

Swing to cheap cuts

Kantar data shows supermarkets are shifting more mince and stewing beef than roasting joints and steaks than this time last year, underpinning cow values.

The public spent £5.9m more on mince in the 12 weeks to the start of December this year than last.

On the supply side, national slaughter estimates show cull cow supply is within a hair’s breadth of last year.

Throughputs are 159 head lower at a total of 82,996 for the eight weeks in November and December.