Price gap between prime beef and cow beef narrows

MAY DAY has come and gone, a time when beef cattle prices are normally on the rise, but they are moving in the opposite direction in 2007.

The strong supply of finished beef animals is pushing prices down, further squeezing cattle farmers’ profit margins, which had already entered “minus” territory.

This week brought a spurt of grass growth, but quoted prices for R grade steers and heifers were generally unchanged across the south and east, at 294 cents/kg (105p/lb).