Beef prices drop as supplies increase

QUOTED prices for beef were dropped by a further 3 cent/kg (1p/lb) for R/O grades at the factories yesterday as supplies continue to increase, but the trade for U grade cattle is remaining strong.

Prices for R grade cattle dropped to 95p/lb at a number of the beef factories yesterday, while 96p/lb was still being quoted at other factories and a shade more was being negotiated in direct deals with the processors, but the higher prices are becoming much harder to secure. Quoted prices for O grade animals ranged 92p-91p/lb with prices for P grade lots being marked down to 85p/lb. The top quality animals - grading U - are continuing to make 100p/lb and a little better being secured for R3 grade in the North-West. This is the fourth consecutive week of downward slide in the prices at the factories.

Cattle supplies appeared to be tightening a little yesterday in some regions of the country - still very plentiful in the South - following a sharp increase in the kill for last week.

Bullock supplies last week were up 1,800 head with a kill of 16,627, within 1,000 of the corresponding week in 2003. The total kill last week rose to 31,906.