Prime cattle prices heading up

Scottish farmers and crofters are enjoying a modest increase in prime cattle prices, according to Quality Meat Scotland (QMS).

Analysis from the red meat levy body reveals that prime cattle prices in the past couple of weeks have been 10-11% higher than prices achieved at this time last year.

According to QMS head of economics, Stuart Ashworth, the main driving force behind the price increases has been a lower availability of cattle reaching the market.

“Throughput in both auction markets and price-reporting abattoirs over the past couple of weeks has been running at lower levels than last year,” said Mr Ashworth.

“Carcase weights are also falling so the volume of beef produced is lower than last year.”

He said seasonality was also a factor in the recent prime movement – prime stock supplies have traditionally tightened during April and into May before hitting a seasonal low in July and August.

“Last year farmgate prices started to rise in the first week of May and two years ago it was at the beginning of June, so the 2017 movement is slightly sooner than last year,” added Mr Ashworth.

Drawing on figures south of the border, Mr Ashworth said the Scottish premium had widened to its current position of 10p a kg deadweight for an R4L steer, compared to 3-4p a kg in February.

He said a better supplied market in England and Wales had resulted in prices being lower than those in Scotland.

Mr Ashworth said meat wholesalers were challenged by an “extremely competitive” consumer market which was making it difficult to pass higher farmgate prices further down the chain.

He said margins in the beef supply chain beyond the farmgate remained slim and farmgate prices would continue to be sensitive to the number of cattle and volume of beef in the market.

Picture: Getty Images. Prices for prime cattle are 10-11% higher than this time last year, says QMS.