UK beef prices remain competitive, says QMS
Prime cattle prices have remained stable and firm, according to Quality Meat Scotland (QMS), and continue to be around 3% to 4% higher than last year, putting pressure on Irish exporters.
Stuart Ashworth, head of economics services with QMS.
Stuart Ashworth, QMS head of economics services, highlighted that average carcase weights for steers killed in Scotland during August were 5kg lower than last year but the numbers killed were slightly higher.
Heifer slaughter numbers also increased, as carcase weights fell, said Ashworth, with Scottish calf registrations in the first half of 2016 being 0.5% higher than the same period in 2015.
He added: “Although not dramatic, this should suggest a slight increase in the slaughter volume from this cohort in the medium term.
“However, in the short term the reduced numbers of older cattle on farms is constraining supply.
The English June census, for example, shows a decline of 3.5% in male cattle over two years old and 0.5% in females not identified as in the breeding herd, before volumes of younger cattle begin to build up.”
Falling carcase weights and tighter cattle supplies have meant that over the first eight months of 2017, the UK has produced 2% less beef, creating some space for imports, noted Ashworth.
Sterling’s weakness has meant in Euro terms that UK cattle price is lower than last year by around 3%, which has led Irish exporters to see “some pressure on prices in the face of a more competitive UK market”, according to Ashworth.
He added: “With prices also lower than a year ago in major beef exporting countries like the United States, Australia and Brazil and much lower than the EU average prime stock price it seems likely that Ireland is finding exporting beef to be more competitive than last year.
“Indeed, Irish producer prices are lower than last year by around one to two percent.”
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