January 22, 2008

UK beef and sheep prices increase with strong demand

A strong demand for beef in the UK market has pushed beef values by more than GBP1/kilogramme (US$1.95) in liveweight markets while prices have also gone up 230-240p deadweight.

The tight beef supply in Ireland and the decrease of Brazilian imports also buoys the UK cattle meat upwards.

Bord Bia, the Irish Food Board, reported that R grade steers increased to GBP2.32/kg (US$4.5) deadweight this week with more available in some areas. Throughput at export meat plants was 16,000 head down in the first week of January.

Meanwhile, Brazilian Beef Information Service director Robert Metcalfe said growing domestic demand for beef was pushing prices to new highs.

Metcalfe said that estimates indicate a rise in the domestic consumption by nearly 180,000 tonnes in 2007. With the strengthening of the Brazilian currency by 40 percent over the last two years, he explained that domestic prices for some cuts of beef are now higher than those in the international market.

In the UK, deadweight averages for R4L spec cattle have been around the 220p mark this week but trending upwards in general.

The National Beef Association is urging farmers to haggle for a huge increase in price.

The association said it was confident that "if finishers play their cards properly, they should be able to secure well over 230p for standard quality steers and 235p, or more, for heifers, with even better prices emerging in weeks to come.''