Over-age price cut could hurt later

THERE is no give in the beef trade this week, with processors reluctant to pay more for cattle, and farmers holding back enough cattle to ensure prices are at least maintained.

Dry weather in the past few weeks greatly improved ground conditions on farms, relieving the pressure to sell stock off water logged land. As a result, the supply of beef cattle tightened, and prices are holding firm.

Without a supply increase, it will be very difficult for processors to lower prices, and a surge in supply is unlikely unless there is an immediate and adverse change in the weather. Meanwhile, demand for beef continues to pick up slowly in the continental EU, particularly for forequarter beef.