Increase in cattle prices

Farmers and crofters are receiving 13% more for their cattle than a year ago, according to Quality Meat Scotland.

Figures from the red meat levy body reveal farm-gate prices in Scotland are trading at 16ppk more deadweight than at the same time last year.

Head of economics services Stuart Ashworth said prices were up as a result of there being less prime cattle on the market and lower carcase weights.

He said prime heifer availability was little changed, but steer and young bull numbers had fallen. This was set to continue throughout the summer.

“This reflects the consequences of encouragement towards lighter carcases encouraging earlier marketing of male cattle,” said Mr Ashworth.

“Indeed latest estimates show a decline in the carcase weight of steers between March and April, a time when historically carcase weights increase.

“Average steer carcase weights during April in Scotland were reported as 387kg – 10kg lighter than last year and 4kg lighter than March. Heifers produced carcases 3kg lighter than last year during April.”

Looking at abattoir activity south of the border, Mr Ashworth said English and Welsh processors were experiencing more plentiful supplies. This had not impacted prices, and English producers are enjoying a 12%, or 10p a kg deadweight, increase in prices.

Mr Ashworth said domestic beef volumes across the UK were down 3% in the first four months of the year, while figures from Kantar Worldpanel consumer research reveal some modest growth in retail demand for both prime cuts and added value beef products.

He said beef imports were back as a result of sterling’s weakness since the Brexit vote and an increase in farm-gate prices in Ireland.

“Lower production, lower imports and slightly improved consumer demand has meant that, despite currency exchange weakness, in Euro terms UK beef prices are higher than last year,” added Mr Ashworth.

“This has contributed to UK exports of beef in the first quarter of 2017 failing to match those of 2016.”

Picture: Kris Miller. Farmers and crofters are receiving 13% more for their cattle than a year ago, according to QMS.