As predicted by many in the industry, reduced supplies of finished cattle are now having a real impact on deadweight prices, with values up in all sectors and in all areas.
While many cattle will already be making more than £5 per deadweight kg, the latest official figures from AHDB reveal overall steer and heifer prices in Scotland of 494.6p and 496.2p, up 4.8p and 5.7p per kg, respectively on the previous week and for reduced numbers slaughtered.
Steers and heifers hitting the R4L grade are making 497.4p and 498.8p, respectively.
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Young bull and cow prices are also on the up with the All Scottish bull price balancing out at just shy of 482p, which is up 1.7p with cows cashing in at 384.5p, a rise of 5.3p per deadweight kg.
Overall values in north of England, central and south of England, have also seen significant improvements due to the shortage of finished cattle numbers available.
As a result, the most recent All GB steer average rose 4.2p to level at 489.0p for a 3% fall in supplies while the number of heifers slaughtered the same week balanced out at 487.1p – a rise of 6.1p for 2.4% fewer killed.
Similarly, the All GB young bull price increased by 4.8p on the week on the back of a 3.1% reduction in throughputs, to average 479.6p.
However, while cows improved on the week in Scotland, the All GB average fell 2.4p, to level at 354.4p, albeit for a 2.1% fall in numbers.
The deadweight cattle trade in Northern Ireland has also been improving, with an average increase of 2.8p per kg reported for steers which cashed in at 474.4p. Heifers improved by 3.4p to level at 475.7p and the young bull average increased 1.5p to level at 463.9p. On the other hand, cows were back 2.6p from the previous week at 321.7p.
The other good news for the industry this week comes from the Aldi supermarket chain which has announced it is to invest £3bn in British beef farmers over the next five years.
The retailer said the investment was part of its ‘ongoing commitment to championing Great British quality and assisting UK producers.’
It added that the investment would allow farmers to plan confidently and provide security for supply chains.
Part of this investment includes a five-year contract with its supply partner Kepak, providing a £260m investment into their line of Aberdeen Angus beef.
The deal is also set to enhance the quality and range of beef available to customers.
Julie Ashfield, managing director of buying at Aldi UK, said the UK farming community played a vital role in food supply chains.
“We’re proud of our long-term relationships with British farmers across the country. Our continued investment in British beef is in recognition of this and means we can continue to provide the best quality British products,” she said.
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