Price stand-off as supply picks up
It was a matter of when, not if, the factories would try to stall the trend which has delivered a 4% beef price lift compared to 2005.
And the likely timing was the cattle supply build up after the short working weeks at Easter and the May holiday week-end.
All processors have been signing from the same hymn sheet this week, telling farmers cattle are plentiful, and they are cutting prices.
Although some factories reduced quotes by 3 cents/kg (1p/lb), they met strong resistance from farmers.
With quoted prices for grade R cattle back to 300 cents/kg (107p/lb) at some southern factories, there were few animals leaving farms for less than 303 cents/kg (108.5p/lb), and 305 cents/kg (109p/lb) and a shade over were being paid in the south for cattle.
The going rate in the midlands was 308 cents/kg(108p/lb), increasing by 3 to 6 cents/kg (1 or 2p/lb) in the north west. Prices for O grade are ranging from 300 to 306 cents/kg (107p to 109p/lb).
In general, stronger prices are being paid by the smaller processors. In recent weeks, the larger processing groups have been paying at or under the national average.
The most significant change in the trade this week has been an increase in the supply of cattle outside the southern counties, which has relieved pressure on factories short of cattle supplies.
Cow prices, which peaked in recent weeks at up to 285 cents/kg (102p/lb) for quality R grade carcasses, are continuing strong this week, but as for prime beef, the pace of the price increase has eased back. Prices being paid for O or P grade cows are still running at up to 274 cents/kg (96p-97p/lb).
