Agribusiness News November 2024 – Beef

Demand holds finished cattle above £5/kg

Finished beef prices have surged to unprecedented levels throughout October – more than 20% higher than the 5-year average - driven by demand and as predicted, reduced supplies of finished cattle are now having a real impact on deadweight prices. Beef trade continues to be strong, with little sign this will change as we are into the last quarter of the year and Christmas, when prices traditionally rise in preparation for increasing prime cattle requirements for the festive period.

The R4L price for Scotland, for week ending 19 October was 529p/kg/dwt. However, reports suggested that several processors were offering several pence more to secure supplies. With processors now entering the Christmas buying period, it is likely that prime beef prices will remain firm into early December. In 2023 beef sales performed well in the weeks before Christmas, with consumer purchasing increasing by over 12%, and it is anticipated that beef sales will see an uplift again this year.

Consumer demand remains strong. Although seasonal events such as Halloween and Bonfire night may not be typically associated with increased beef sales, Kantar data has highlighted that in 2023, beef sales performed well in two weeks to November 5th recording the second largest seasonal uplift of the year.

Finished cattle price supports calf trade

At store sales, tight supply, and finished prices holding above £5/kg has led to a buoyant trade for store cattle and weaned calves, with prices historically firm throughout the start of the main autumn selling period. Store cattle sales have been boosted in numbers in October as the suckled calves have come onto the market. Well fleshed forward stores continue to be a good trade, as finishers battle to secure numbers. Suckled calves are trading at phenomenal levels, well above £3/kg, with some suckler producers reporting an uplift of £100/head compared to a year ago. Feed prices being less is also contributing to the trade for suckled calves this autumn, although the price of straw and availability in some areas is cause for concern.

Cull cow values

The cull cow trade also continues to be strong sitting around 420p/kg deadweight. The autumn bull sales have just recently passed, with many producers fearing a subdued demand as suckler numbers continue to decline, trade was however reasonable, for the numbers forward, - on par with a year ago - with strong prices paid for the best commercial bulls. Continental breeds achieved the highest prices, with the Simmental breed topping the sale.

In recent weeks prices have begun to ease back, with more numbers coming available with weaning, housing and spring calving herds scanning cows. Processors will look to reduce cull cow throughput to make room for increasing prime numbers, which will affect prices. However, it is anticipated that cull cow prices will see a short-term uplift in price during the school half term, as mince is a popular, cheap and quick family friendly meal choice.

sarah.balfour@sac.co.uk