Low Cattle Prices Could Harm Rural Heritage
08/10/05

Beef consumption is robust, retail sales volumes are up and retail prices are relatively stable, but prices paid to beef cattle farmers have fallen by more than 10 per cent, according to the English Beef and Lamb Executive (EBLEX).

Beef retail volume sales* in England have increased by one per cent in the 52 weeks up to 11 September 2005, and have been fairly stable throughout the year apart from a dip during the warm spell in mid June to mid July. Over the same period, English retail prices** have remained firm at around £6.19 per kg.

Beef cattle prices in England & Wales have been falling steadily since early July and had fallen by over 20p per kg deadweight to £1.68 per kg deadweight by the week ended 24 September.

Richard Ali, EBLEX Chief Executive said: "Common sense would suggest that that our farm-gate beef cattle prices should actually be relatively strong - consumption is buoyant and retail purchases have remained firm, UK consumers express preferences for domestic beef but we only produce enough beef to meet two thirds of our consumption requirements, and the EU-25 has a growing beef deficit.

"However there has been continued downward pressure on cattle prices over recent months and the vast majority of beef producers are now making a financial loss during a critical period when they are making decisions about their futures under the new CAP regime.

"If poor cattle prices persist we will see a fall in livestock production, a greater reliance on imports and resulting damage to England's landscape and rural heritage."

*Source: TNS data on fresh and frozen beef sales at retail **Source MLC Economics - saleable carcase price and doesn't include retail buy-one-get one free promotions.