Suckler cows in short supply as finished beef markets thrive

Finished beef markets have continued to go from strength to strength in recent months and are up by almost 30% on the year, with top deadweight prices on the cusp of 650p/kg.

At auction markets across England and Wales, finished heifers climbed to 372p/kg liveweight, while steers averaged 359p/kg and cull cows stood at 223p/kg towards the end of February.

Total spend on beef by GB households was up by nearly 6% in the past year, according to retail data from Kantar, with both volumes and average prices lifting.

See also: Tremendous beef trade here to stay with supplies scarce

The triumph of finished beef prices was a key talking point at an NFU Livestock Board discussion on 20 February, as well as the role livestock markets play in achieving a fair price and “keeping the trade honest”.

Oli Lee, NFU Livestock Board vice-chairman, said the sector was being sustained by higher livestock prices, with returns for beef and sheep at record levels keeping a bit of buoyancy and making the job a bit more enjoyable.

However, concerns were raised over the future supplies, with suckler cow numbers dwindling.

There were calls from board members for the return of a suckler beef premium to encourage cow numbers to be maintained, as high beef prices encourage some producers to sell.

NFU Livestock Board chairman David Barton said: “Sucklers still represent 60% of the prime beef in the UK, so it’s very significant.”

Yorkshire farmer and NFU Livestock Board North chairman Andrew Loftus agreed that the market had been pretty good and said his region still had good competition between abattoirs.

“Demand for beef and lamb, particularly beef, remains incredibly resilient despite inflation,” he said.

“The suckler herd has stabilised, but it is still not being sufficiently championed for its role in producing the majority of beef in this country.”

Rob Lewis, NFU Cymru Livestock Board chairman, said Welsh farmgate prices for beef had also held up or improved, but his biggest concern was the decline in suckler cow numbers in Wales.

“It has been very prominent the number of cows that are going out and now with the higher prices for stock they are not going to be replaced,” he said.

“I don’t know where the tipping point is going to be and how sustainable beef prices are going to be.”

Quality Meat Scotland reported similar issues to Farmers Weekly, with destocking posing a major concern for the Scottish livestock sector and the wider supply chain.

Beef supplies are not just tight in the UK, though, with production in many of the major beef producing regions having dropped back.

Mr Barton said the beef market in the US was similar to the UK at the moment, with supplies tight, but there was real confidence there, which was something needed in the UK.

He said there was real investment going into processing plants and large feedlots in the US, which was helping US producers become more efficient.