Factories resisting higher prices

The upward trend in beef prices at the factories slowed to a trickle yesterday with reports of stronger supplies of cattle in the south and increasing resistance by the processors to paying higher prices.

The price band between factories for cattle has narrowed considerably this week, with most of the factories paying within a range of 105.5p/lb and 106.5p/lb for R grade animals in the south, east and Midlands.

Some deals worth 107p/lb were reported from the Midlands for R grade stock, but they were the exception rather than the rule, except for the north-west where deals worth 107p plus were reported. Prices for O grade animals are generally 103p/lb. The factories quoted 105p-106p/lb for Rs and 102p-103p/lb for O grade.