April 26, 2011
British ex-farm beef prices reach record high
Ex-farm British beef prices have surged across the GBP3/kg (US$4.9) barrier for the first time in 15 years.
The national deadweight average for steers grading R4L stands at GBP3.02/kg (US$4.97), GBP0.26/kg (US$0.43) more than the same time last year. This is the highest since before the mad cow disease crisis in 1996.
Scottish averages are also above the GBP3 (US$4.9) mark. The latest for steers at GBP3.03 (US$5) is a GBP0.21 (US$0.35) improvement on last April, while heifers are showing a rise to GBP3.01 (US$4.96).
National prices are being driven by the demand for beef, which is outstripping available supplies because of the significant declines there have been in the British herd.
National Beef Association Scotland vice-chairman Jim Stewart, of Kinbroon, Rothienorman, said beef producers needed the much-improved prices. However, he is concerned at the impact the rising farm-gate prices will have on price-conscious consumers, and fears a possible backlash.
"We need every bit of the price increase there has been in recent months to offset the big increases there have been in fuel and fertiliser costs," he said.
Stewart said suckler cows were still being sold as some producers were unable to run them profitably. Conversely, others are expanding their herds as they see a market opportunity. The higher ex-farm prime prices are being matched by increases for store cattle.
