Prospects positive for beef prices

Marts: The prospects for beef prices for the rest of the year are now looking more positive than at any time so far in 2006 as the threat of a 252 cents/kg (90p/lb) base line price for R grade animals continues to recede.

While prediction in the beef sector is always hazardous, informed industry sources believe the autumn base line price should not fall below an average of 266 cents/kg (95p/lb) and optimists believe it could hold closer to 272 cents/kg (97p/lb).

The only certainty in the beef industry has ever been the high level of uncertainty and a positive outcome for the year will depend on no unexpected disruptions over the next four months.