Agribusiness News September 2024 – Beef

Finished price reaches £5/kg

After a short-term uplift in numbers forward between mid-May and mid-June, finished cattle numbers are now scarce (as many had predicted) with processors eager to source cattle. This has led to a rise in fat cattle prices throughout July and August with prices recently breaking back above year’s levels to above £5/kg. Prices now being quoted in Scotland for R4L steers is 502/p/kg/dwt.

Going forward, expectations are for cattle numbers to tighten further into the autumn and final quarter of the year, with the 2022 spring calf crop passing peak slaughter age and young bull availability also now past its seasonal peak, which will support prices. The beef price is predicted to remain strong over the coming weeks, as reports point to supplies tightening further.

An uplift in price, combined with lower feed prices, will be reassuring and encouraging for finishers as we move toward the big autumn calf sales. At these, some sucker producers may have been fearing finishers would be cautious, after the falling beef price back in the spring.

Finished prices in England have also risen recently, again due to the shortage of finished cattle. With supplies tightening south of the border it is likely that the autumn calf sales will be strongly supported by English buyers.

US beef demand

Cattle numbers are currently smaller on a global scale, with the US reported to have the lowest number of cattle on farms since 1951, and figures showing 2% fewer cattle on farms at the start of the year compared with 2023. US beef production is reported to be down by 3% so far in 2024, although heavier slaughter weights are helping to offset this.

Store cattle

Store cattle prices remain strong, and it is anticipated that there will be strong competition ringside as finishers look to fill sheds at the autumn sales. Figures from BCMS data in April highlight reductions of over 4% in the 6–12-month age group in both Scotland and south of the border, which suggests a tight supply of shorter-keep store cattle.

Cull cow values

Cull cow values have crept upwards in recent weeks, with better consumer demand, improved BBQ weather compared with last year, fewer livestock numbers forward for slaughter. Those with spring calvers should consider scanning early to get empty cows away at current prices, as seasonally cull cow prices become less ahead of winter housing.

Straw price variations

Reports suggest considerable variations in straw availability which is impacting prices across the country. For those who are reliant in buying in straw for winter, now is the time to contact straw suppliers and merchants to source straw.

Sarah.balfour@sac.co.uk