Processor games on hold as beef price heads to £4.80/kg

Back-to-school demand and scarce cattle supplies have released the summer handbrake on beef prices, seeing processors bid upwards of 470p/kg deadweight after two months of tumbling trade.  

Strong 550-600kg yarding cattle have returned to 280-300p/kg liveweight levels, reacting to Angus contracts at 475p/kg dw and commercials 5p/kg dearer than last week.

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Processors clawed back 45p/kg dw this summer from £5/kg highs, blaming poor summer weather, and consumers abroad for summer holidays for a weaker cattle trade.

Additionally, sources say the Bridge of Allan plant’s four-week mothballing after ABPs takeover from Scotbeef meant 750 extra cattle a week needed to be processed by other sites.

This precipitated a cat-and-mouse game in which 5-10p/kg processor price drops panicked finishers into selling more cattle, temporarily cooling the beef price.

Kantar figures show beef retail volumes were down 1.1% in mid-summer, with steaks and mince the only products performing well.

However, finishers are reporting 24-hour collecting from desperate processors, although falling milk prices in Northern Ireland have resulted in a rise in cull cow supply and a seven to 14-day wait.

Fast price rise

Aberdeen and Northern Marts’ Tim McDonald reported consignments of 550-600kg cattle had lifted from 248p/kg lw, to 273p/kg lw, to 292p/kg lw over the past three weeks.

Auctioneers at Sedgemoor also reported a much stronger trade, with feeding cattle at £1,550-£1,695 apiece.

“Everything – cows to calves and stores – has been pulled up in value,” said Mr McDonald.

“The 380kg yearlings stores were £950-£1,000 a few weeks ago and are now £1,120-£1,150. They simply aren’t there to buy or sell.”

Stuart Vile at Meadow Quality said Angus cattle are short and there is a huge variation in deadweight quotes, some of which were at 445p/kg this week.

Mr Vile said trade looked firmer, but stressed that Irish trade, which is 66p/kg below UK beef, could take up the slack.

“I’m not sure the cattle are there in Ireland, but we will see.”