Sharp rise in demand from Italy

BEEF trading at the factories this week was been a shade better than expected for the final week of 2002, as the industry prepares for the Christmas holiday.

The retail demand in Britain has been firm, which has boosted demand for young cattle at the factories and resulted in up to 1p/lb improvement in prices, where supplies of these animals were scarce. Up to 249 cents/kg (89p/lb) was available for R grade cattle under 30 months this week and some producers managed to get close to the same prices as a flat rate for quality cattle, where the demand exceeded the available supply.

Most of the factories quoted 235 cents/kg (84p/lb) for O grade cattle under 30 months this week, similar to last week.