Sharp fall in beef prices

BEEF prices fell sharply at the factories yesterday with the trade experiencing one of its worst days in years as the processors reduced requirements because of weak export markets.

At its peak it appeared that prices at the factories were falling by the hour as panic set in among suppliers who were experiencing difficulty in getting cattle booked into the factories and some described it as a collapse of the trade.

Most of the factories opened trading yesterday with offers of 271-257 cents/kg (97p-92p/lb), for R/O grade animals, a drop of up to 12 cents/kg (4p/lb) on week earlier quotes. But so strong was the supply of stock, relative to reduced intake requirements, that some factories were buying cattle for today's kill at a further reduction of 6 cents/kg (2p/lb) in the afternoon, paying 266-252 cents/kg (95p-90p/lb) and were refusing to underpin the price forward.