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There is growing optimism within the beef and sheep trade for positive price trends during the early stages of 2024.
Factors underpinning the upbeat outlook include a vibrant live trade where mart prices are running well ahead of those paid at local factories.
But the main positive is a growing shortage of prime cattle and sheep across the UK and Republic of Ireland, with little sign of the trend being reversed over the coming weeks.
Official quotes for prime cattle have increased to 458p/kg for U-3 animals, although that still bears little resemblance to the prices being paid for in-spec steers and heifers this week.
Multiple reports indicate 474p/kg is a realistic starting price, but that 478p and 480p/kg are freely available as factory agents chase numbers. There are reports of deals exceeding 480p/kg for regular finishers.
However, these prices are still running 20p/kg behind factories in Britain. Beef prices in Scotland are in the region of 505p to 510p/kg for U grading animals with factories in England paying up to 500p/kg.
In the live ring, mart managers’ report dwindling numbers of slaughter-fit and short-keep animals being forwarded for sale in recent weeks, which has boosted prices by 10p to 20p/kg.
Good quality U grading animals are making 280p to 290p/kg, which equates to deadweight prices in the region of 480p to 500p/kg.
Sheep
In the sheep trade, January starts with base quotes unchanged on 535p/kg, although most deals are in the region of 540p to 545p/kg.
However, given marts are returning £124 to £128 for slaughter-fit lambs, local factories are coming under pressure to pay more.
Driving the mart trade are agents for Republic of Ireland factories, where prices have increased by 10c/kg to €7/kg this week, payable on a 23kg carcase limit.
After deducting VAT, and converting to sterling, that equates to factory prices in the region of 575p/kg. In Britain, factory prices for old season lambs are running well above the 580p/kg mark.
The sheep trade is also set for a price boost in early spring with the month-long Ramadan festival set to commence on 10 March.
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