High supply keeps prices down

Beef prices were cut by an average of 1-3c/kg at the factories as the supply of cattle to the processing plants remained high at over 40,000 head slaughtered last week.

The strong supply of cattle — the fourth week in a row of strong intake — and a slight weakening in demand on export markets provided the platform for processors to cut returns to producers, a process further extended this week, dashing expectations on price for the pre-Christmas kill.

Save a few exceptions, the cut was effected across the factories, bringing the average paid for R4L bullocks to 104.7p/lb and R4L heifers to an average of 105.7p/lb. The average paid for O4L bullocks slipped to 101p/lb and the average for O3 heifers was slightly lower.