Prime cattle prices remain high

Farmgate prices for prime cattle remain firm in Scotland, with recent values bouncing back after a dip in June and currently stand almost 8.5 per cent higher than a year ago.

According to Quality Meat Scotland’s latest market commentary, reduced slaughter numbers during June was a result of both a reduced number of cattle available and also disruptions caused by processing staff self-isolating because of Covid control measures.

Stuart Ashworth, QMS chief economist said that this, combined with a slight fall in carcase weights, resulted in domestic beef production during May and June in the UK falling more than three per cent compared to last year. But he added that domestic supplies are also influenced by the balance of international trade. “Trade data is not yet available for June,” said Mr Ashworth. “But data available to the end of May show UK exports of beef have recovered strongly from a low point in January, and, during April and May, accounted for some 12.5 per cent of UK ex-abattoir beef volume.”

During May, exports recovered to be only four per cent lower than a year ago compared to the 40 per cent decline in exports in the first quarter of 2021.

However, Ashowrth pointed out that beef exports in the first quarter of 2020 were not affected by Covid control measures across Europe nor the challenges of Brexit on export administration and logistics.”

He added that beef cuts for sale to restaurants, such as striploins, fillets and rib roasts, had seen a rise in prices, while lower value like mince had seen little improvement.