No sign of pre-grass price lift yet

CONFUSION and anger reign in the beef trade this week, as prices come under increasing pressure.

Farmers are very angry that prices have been further reduced at a time of the year when seasonally it has been normal for the trade to improve, as supplies of cattle out of the sheds fall back. It will be a few more weeks before cattle commence coming off the grass, but supplies continue quite strong.

Confusion arises as to the reason for falling prices. Some sources are blaming the restricted inspections by vets at the factories; others are saying that the quieter tone to the markets, weaker demand for beef, and lighter export orders are the reasons. But processors are getting plenty of cattle despite the falling prices, and they are unlikely to offer more, with slack order books, and added uncertainty because they do not know how the cut in veterinary staff to inspect slaughter cattle is going to affect their killing lines.