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Prime Prices Underpinned By Tight Supply

26 March 2013

UK - Defra slaughter statistics for February show UK processors have killed 2 per cent fewer cattle than last year, which follows on from a 3 per cent decline during January, according to Quality Meat Scotland (QMS).

However, the pressure on numbers has been greater in England and Wales than Scotland.

“During February, Scottish abattoirs are reported to have killed 1 per cent fewer prime cattle than they did last year while throughputs in abattoirs in England and Wales fell by 4 per cent,” observed Stuart Ashworth, QMS Head of Economics Services. This is, however, a modest improvement from the 6 per centdecline in the kill in January in England and Wales.

“The tightness in numbers is aggravated by lower carcase weights. During February the estimated carcase weights of clean cattle across the UK were just over 2 per cent lower than last year,” said Mr Ashworth.

“Combine the two elements and supplies of beef from prime cattle during February were 4.3 per cent lower than last year. However there has been an increase in cull cow slaughterings, compared to a year ago, and as a result the overall production of beef in the UK during February was some 2.5 per cent lower than last year.”

At the same time as domestic supplies have tightened, said Mr Ashworth, most of the multiple retailers are seeking to minimise the damage of the horsemeat scandal by reaffirming their commitment to beef from the UK and Ireland.

The current supply and demand balance is therefore favouring producers. However, the publication of the December census results for the UK does show an increase of 1.8 per cent in the number of male cattle between one and two years old and an increase of 2.2 per cent in the number of heifers in this age group.

The sector that has benefited least from the recent increase in farmgate prices for livestock has been the pig sector.

“Despite a small increase in the past week, prices are lower than they were at the start of the year. A quick look at slaughter statistics reveals an increase of 1 per cent in prime pig slaughterings across the UK during January and February compared to a year ago," added Mr Ashworth.

However, the results of the December census suggest that this improved supply will be short-lived as they reveal a decline of 3 per cent in the number of fattening pigs on farms which is consistent with the reduced number of sows,” said Mr Ashworth.

The census did, however, report a significant increase in the number of gilts intended for breeding which may mean that the decline in UK sow numbers that has been occurring for an extended period may be coming to an end.

TheCattleSite News Desk

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