Pressure is mounting on the beef trade and farmers with cattle to sell are facing significant price cuts this week.

The prospect for higher prices on the back of the surge in retail sales have not materialised and, unfortunately, cattle prices are now moving in the opposite direction.

Processors cut between 2p and 6p/kg off base quotes this week, putting U-3 grading animals on a starting price range of 320p to 324p/kg.

Farmers booking cattle in for slaughter over the coming week indicate that plants are holding firm at 324p/kg for steers and young bulls

Although retailers and butchers are experiencing a spike in sales, processors indicate they require fewer cattle to fill orders.

While farmers report that cattle agents are only interested in sourcing in-spec animals to supply the retail sector, they are finding there is little scope to negotiate for higher prices.

Farmers booking cattle in for slaughter over the coming week indicate that plants are holding firm at 324p/kg for steers and young bulls.

Regular finishers are not faring any better, with little more than 2p/kg available on bigger numbers, despite 330p/kg paid at the outset of the week.

Last week, the average price paid on steers and heifers fell by 0.7p to 331.5p/kg

Heifers are moving off-farm at 326p to 328p/kg, rising to 330p/kg at the very top of the market where bigger numbers are on offer. Earlier this week, heifers were selling at the upper end of the 330p/kg price range.

Last week, the average price paid on steers and heifers fell by 0.7p to 331.5p/kg. The average price paid across all steers was 330.47p/kg, with U3 grading animals down 0.8p to 339.3p/kg.

For heifers, prices averaged 332.84p/kg across all grades, with U3 animals averaging 343.6p/kg, down 2.6p/kg on the week.

Cows

Processing demand for cull cows has collapsed with processors cutting base quotes by 10p to 20p/kg.

This puts O+3 animals on 230p to 240p/kg with R grading cows back to a base of 250p/kg. As with prime cattle, deals above base price are hard to come by with farmers reporting limited interest from cattle agents.

Hoggets

The hogget trade is still in freefall with quotes slipping to 400p/kg to 22kg dead weight.

However, there is a feeling in the trade that the market is steadying at this level and with Easter coming up, there could be some improvement.

Any price premium will depend on the strength of demand from the butchery sector

Limited supplies of spring lamb are coming out to supply the butcher trade and initial quotes are at 430p/kg payable to 21kg dead weight.

Obviously, this quote needs to increase to provide a premium over the hogget price.

Any price premium will depend on the strength of demand from the butchery sector.

The auction marts remain closed there is no live trade and no prices for hoggets or ewes.

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