Beefing About Cattle Prices
23/08/05

photo courtesy of www.jennifermackenzie.co.uk

BLAME for the weaker cattle prices being experienced over the last few weeks can't be laid wholly at the door of lower consumer demand.

Though TNS figures for the four weeks ending on July 17, produced for the Meat and Livestock Commission (MLC), showed a 14 per cent fall in fresh and frozen beef consumption in the home this is only part of the picture.

When other types of beef were included in the equation - particularly burgers which showed a dramatic increase - the volume fall was just 4.5 per cent.

MLC Marketing Director Richard Lowe said: "A fluctuation like this can be expected in any four-week period during the year and is certainly not enough by itself to account for the changes in cattle prices."

Historically when July is colder, overall beef sales increase and when it is warmer beef sales fall, though individual products such as beefburgers can rise.

One of the contributory factors to the large increase in 2004 was that July was colder, and conversely as it was warmer in 2005, sales have fallen.

MLC Economic Manager for Beef, Duncan Sinclair, said: "Cattle prices have continued to weaken through July and into August, although there are signs the rate of decline is starting to level off.

"The increased availability of south American steak meat reported in circulation within the GB market has been mirrored elsewhere in the EU.

There have been difficult trading conditions in other EU member states, particularly Italy where Irish exports have been affected by Brazilian product.

"Official trade data is only available up until the end of May so it will be some time before import data for July is published.

"EU cattle prices have also shown declines in recent weeks, particularly in the Irish Republic."