Tightened supply raises beef prices

THE improvement in the climate for beef — from a producer point of view — has been consolidated across the factories this week, with further gains as the supply of finished cattle remains tight.

The scale of change in the prices being paid for this week has eased back, following a good turnaround last week, but at least any change is in the right direction for producers and has been induced by the tightening in the supply of cattle to the factories over the past two weeks.

Prices across the country have now gone to the right side of the 280 cents/kg (100p/lb) benchmark for R grade animals, mainly as a result of an easing in the flow of stock to the processors, which has resulted in factory buyers having to work a little harder to get sufficient cattle and consequently pay a little more for them.