Prices harden on tighter supplies

Tighter supplies of beef cattle in the midlands and northern regions of the country has led to a further hardening on prices for this weeks kill.

Producers up country were in a position to bargain for 86p/lb for R grade cattle yesterday as the supply of finished cattle tightened leading to processors having more difficulty in getting their requirements. The increase has not been passed on at the same ratio to the poorer grading animals which are still lingering around 80p/lb, except where the majority of a load are in the upper grade and a flat price is agreed.

In the south the effect on supply was less obvious. Some processors were finding the situation “a little tighter” while others confirmed that there was plenty of cattle on offer from dairy/beef farms where retention expired for the 21 month premia they were being moved out in larger numbers.