Window of Opportunity on the Market
UK - For the first time since 1996 the ball seems to be firmly at the feet of cattle producers as strong demand for beef and a shortage of cattle numbers drives up prices. The UFU is urging producers to market cattle strongly and take full advantage of current conditions.
30 January 2008
2 minute read
* "Producers now have a collective opportunity to drive prices up to new levels" |
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UFU President Kenneth Sharkey
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UFU President Kenneth Sharkey said; “The Red Meat Taskforce tells us we need £3.20 per kilo so the current rise in prices is more than needed, especially with the increasing costs that we face. Producers now have a collective opportunity to drive prices up to new levels so I want you to seek the best possible deal for your cattle and have confidence when selling your cattle”.
A whole series of events have conspired to put producers in a strong position. The impact of the ban on Brazilian beef is now being felt; the Euro is very strong against sterling making imports less competitive; many suckler producers have been downsizing; prices are high in the Republic of Ireland; and generally supplies are now tight but demand is as strong as ever for good beef.
Against this backdrop retailers will be looking very closely at how to secure their supplies of beef. The UFU is telling retailers that paying better prices, sustainable prices, is the only way to solve the problem.
Kenneth Sharkey said: “These stronger prices are badly needed to offset our problems with the costs of feed, fertilizer and fuel. I want producers to get the best possible prices from the market and there is no reason why prices should not continue to climb. Processors and retailers have taken farmers for granted for years but that can no longer be the case”.
TheCattleSite News Desk
