Store cattle ‘on fire’ as finished beef reaches 470p/kg
A pen of steers sold to average £1,740 at Hexham last week © Robert Smith Demand for store cattle weighing more than 350kg has been stoked by English base prices hitting 470p/kg deadweight this week, as finished cattle become short on both sides of the Irish sea and cereal prices ease.
Strong beef mince demand and a buoyant Irish beef price – helped by growing export markets – has underpinned UK values.
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Irish finished prices hit the equivalent of 470p/kg deadweight two weeks ago and UK dairies are moving cull cows for £4/kg.
One source told Farmers Weekly factories were sourcing clean cattle to blend into cow mince to ensure high enough fat levels.
Stores firmer
Against this firm background, Scotland’s “young” cattle price – for animals aged six to 12 months – has gone up by 56% in the past four weeks, increasing more than £400 to average £1,177, according to Quality Meat Scotland.
Meanwhile, AHDB data for the past two weeks (31 December and 7 January) for two-year old continental and continental-cross steers averaged £1,276 – more than £100 a head higher than late October 2022. Further increases are expected.
In addition to this, UK feed wheat prices dropped by £4.10/t on the week to total £217/t on 18 January, giving some respite for cereal feeders.
According to traders, “new year, new prices” should be the mantra for finishers marketing cattle. However, last year’s drought has left a legacy of low forage reserves, leaving buyers wary of paying over the top for stores.
Records broken at Hexham
Drew Patrick, auctioneer at Hexham and Northern Marts, said every class of store was dearer at the mart’s most recent sale.
A record £2,320 was paid for 650-700kg bullocks destined for a specialist wholesaler requiring another six to eight weeks of feeding, he said.
“Supply of shapely continental cattle is tightening,” said Mr Patrick.
“There aren’t the cows on the ground to breed them. Input costs have made a traditional six- or seven-month housed system with continental cows look uneconomical for some.”
He added that some herds needed to sell calves for £1,080-£1,100 a head “just to stand still”, with costs of £680-£700 a cow.
“The switch to easier-calving bulls and more Angus-, Shorthorn- and Hereford-bred cattle is lowering cost and management, but has led to a drop in conformation.”
Shapely heifers, bought to be fed to 580-600kg with 63-65% kill-out for butchers and wholesalers were priced at 300-350p/kg.
Forward commercial stores for large deadweight outlets had lifted £80-£100 a head since early December, while Blue-cross dairy equivalents had increased by £150 a head.