Prime cattle prices have again fallen significantly on the week, both in the live ring and on a deadweight basis, but the good news is slaughterhouses are at long last getting through the backlog of cattle which at one time saw a three-four week waiting list at some centres before finished cattle could be booked in.

Last week’s trade was down by as much as 20p per live kg in some Scottish marts and this week hasn’t been much better with bullocks and heifers down by 5.4p and 8.8p at 157.4p and 157.5p respectively, at St Boswells on Monday, while at Dingwall on Tuesday, prime steers averaged 159.5p, down 3.2p with heifers actually increasing by 2.4p to settle at 161.6p.

The deadweight trade dropped further this week too and is fast approaching 270p with the result that beef finishers are now losing well over £100 per head on a prime beef animal compared to at the end of last year when average prices sat around 296p for months before rising above 300p in January due to the shortage of supplies coming forward in the bad weather.

However, while many ‘in the know’ blamed the recession as the main reason behind the gradual decline in prices and demand over the past four months, figures from Scottish Leather Group in Paisley, reveal a more likely scenario – a massive increase in supplies week on week from both the UK and Ireland. The figures, which show the number of hides from all finished beef and dairy animals, to include cows, processed by the company on a week by week basis points out that an extra 119,065 more hides have gone through the company during the first 17 weeks of 2010 compared to the same period last year.

The numbers processed are also well up on the 2010 forecast – set lower than the 2009 and 2008 actual figures – on a weekly basis, with the figures increasing anything from 3000 per week to 14,000.

The increased numbers also tie up with the GB slaughter figures from the Agricultural and Horticultural Development Board which for the first four months of 2010 show steer slaughterings up 3.7% on the year while young bulls are up a massive 19.3%.

Cows and adult bull slaughter figures have increased by 4.5% while calve slaughterings are up 4.5% on the first four months of 2009. In contrast heifer slaughterings dipped 9.2%. The increase in throughputs was most marked in Northern Ireland where slaughterings in April were almost 15% higher than year earlier levels.

And, of course, the drop in the strength of the euro is another factor affecting trade with several meat plants reporting reduced export sales to the continent.

But despite the continual decline in finished prices, there is still optimism in the trade with most expecting prices to start increasing in the next month.

Alan Craig, president of the Scottish Meat Wholesalers Association, admitted demand had been soft for most of this year, but that the industry is now getting through the back log of cattle created from the glut of animals ready for slaughter during this time. He also added that most Scottish plants are almost back to normal when it comes to booking cattle in, and therefore prices should have bottomed out.

Similarly, Alan Kennedy, livestock convenor of the Scottish Meat Wholesalers Association said: “Fat cattle prices are still a lot better trade than what they were two years ago and while the trade for the average commercial-type cattle has dropped, prices for top end, butchers cattle have remained much the same although they may have fallen slightly.

“People are still spending the same amount on beef they’re just buying more carefully and buying more of the cheaper cuts. We are now starting to see a rise in middle cuts though with the increased tourist trade at this time of year and growth in sales for steaks that goes with it.”

In contrast, the National Beef Association claims breeders and feeders should work together more to create a more even supply of prime cattle for slaughterers, easing the seasonal overload which is dampening down prices just as the most expensively finished stock is moving onto the market.

Consequently, it is urging breeders to re-consider the advantages of autumn calving and finishers to take on board the idea that staggered sales, or an effort to avoid over-selling in spring, could generate more income overall. Supply and demand generally rules the market and prime cattle prices are being pulled down because at the moment there are a lot of heavy cattle coming forward and depressing the market.