Business and Policy March 2026 – Beef

Finished Prices Pressured  

Despite processors reporting tightening cattle supplies, finished beef prices continue to be pressured and have eased back throughout February with current prices sitting at the end of February at around 640 – 645p/kg/deadweight, with Angus sired cattle still maintaining 10p/kg premium.  For week ending 21st of February prices for Scottish R4L steer grades were sitting at 644p/kg/deadweight, roughly on par with the same week last year.  GB deadweight steers have fallen by 25p/kg in the past three months to average 636p/kg in mid-February, while liveweight finished steers have dropped slightly to 373p/kg.   

Consumer demand for beef is significantly reduced, with low value cuts and manufacturing beef e.g. mince being sought after as consumers look to save money following January’s credit card bills.  Cost of living pressures also continue to push consumers towards cheaper protein options, particularly chicken.  With reduced consumer demand and less beef in shopping baskets, prime cattle prices have steadied; a huge contrast to this time last year as beef prices soared before reaching the dizzy heights of £7.40/kg/deadweight.  

Finished Cattle Trade 

Many share the opinion that the record farm gate prices received in 2025 were unsustainable and created a false economy.  Beef prices rose rapidly and the price of prime cuts of beef reached levels where pubs and restaurants opted to remove steaking cuts.  

So, do we really need finished cattle prices to return to the higher levels received in Spring 2025?  While greater remuneration is always welcome, most would prefer to see consistency from processors and price stability instead of price fluctuations.  

Looking forward, it is anticipated that finished cattle prices will rise, as numbers forward tighten.  In theory, availability for slaughter in Scotland should be seasonally high in early 2026 as the spring calf crop from 2024 reaches peak slaughter age.  However, record prices in 2025 coupled with the low price of cereals e.g. barley and the trend to finish cattle quicker means that, there are, and will be, fewer cattle in the system going forward. 

 

Store Cattle Trade Remains Strong 

Stores continue to be met with a strong demand across the country with both suckler and dairy-bred types being sought after despite forage shortages in some parts of the country.  It remains very much a seller’s market as the gap between strong stores and finished beef prices continues to narrow.  Strong store cattle prices have resulted in finished cattle returning limited margins.   

While elevated store cattle prices look good on paper, it is worth remembering that the cost of production for many beef producers, taking into account both variable and fixed costs have continued to increase.  

 

Cull Cows 

Although the gap between 2025 and 2026 GB pricing has narrowed, cull cow trade remains firm.  For week ending 21 February, Scottish prices were sitting at 555p/kg/deadweight; with many markets reporting strong demand for cull cows in the live ring.  The question remains however, whether more cows will come forward as milk buyers introduce production quotas from the 1st of March 2026, or whether excess milk will instead, be fed to calves.  Cull cow prices could come under pressure if increased numbers of dairy cows come forward. 

 

Stirling Spring Bull Sales  

Cautiously optimistic is no doubt how many pedigree breeders felt ahead of the recent Spring bull sales as breeding cattle sales had met with an exceptional trade.  However, despite the increase in entry of bulls forward, the highest since 2022, the optimism was justified as sellers were largely met with increased demand from commercial buyers.  

The trade for breeding bulls was no doubt underpinned by strong beef prices throughout the past year.  Both the Angus and Shorthorn breeds produced record averages and breed record prices.  In previous years, these native breeds have fallen behind the continental breeds in terms of setting records.  However, the movement towards easier calving and a more maternal native type of cow that can be extensively grazed on areas of hill using technology such as virtual fencing has led to a surge in demand. 

The recent two weeks of bull sales at Stirling saw commercial buyers keen to invest in top quality bulls which lead to significant increases in breed sale averages and clearance rates; with commercial buyers paying high five figure sums for bulls. 

 

Remembering Foot and Mouth – 25 Years On… 

Twenty five years have passed since the 2001 Foot and Mouth Disease outbreak was announced on the 20th of February.  Many will remember the empty fields, the smell of the pyres and the emotional toll on livestock farmers.  Whilst Cumbria was the worst hit county, with over 6.5 million cattle and sheep slaughtered across the UK during the outbreak, the effects are, for some, undoubtedly still being felt today after decades of breeding and generations of bloodlines were lost overnight.  While we can put a value on the economic loss; the personal loss was far greater.  

UK agriculture was reshaped following the outbreak, including our biosecurity and movement traceability and reporting being transformed.  Although, 25 years on from Foot and Mouth, the threat of disease remains a concern for our livestock industry; the main pressures facing cattle producers currently are from price fluctuations and policy uncertainty.  

 

Sarah Balfour, sarah.balfour@sac.co.uk

 

Scotland prime cattle prices (p/kg dwt) (Source: drawn from AHDB and IAAS data)

Week Ending	R4L Steers (p/kg dwt)			-U4L Steers			Young Bulls -U3L		Cull cows
		Change on week	Diff over North Eng.		Change on week	Diff over North Eng.		Diff over North Eng.	R4L	-O3L
31-Jan-26	647.3	-3.2	-5.0	638.5	-8.9	-8.8	633.6	12.2	554.9	525.7
7-Feb-26	644.0	-3.3	-1.7	639.0	0.5	-4.5	635.6	9.3	555.0	532.2
14-Feb-26	642.7	-1.3	-6.4	639.7	0.7	-8.5	630.9	4.0	554.4	533.0
21-Feb-26	644.6	1.9	-6.5	642.8	3.1	-8.7	627.7	5.1	555.9	533.7