13/08/07
The National Beef Association has urged British finishers
to work hard to maintain upward momentum in the prime cattle
market despite the loss of the auction system which has accounted
for 24 per cent of slaughter cattle sales, including cows, over
the past 12 months and the export market which took 11 per cent
of beef sales of which 75 per cent was cow beef.
It says upward movements in both deadweight and live weight prices
immediately before FMD, confirms a late summer tightening in slaughter
cattle supplies and believes this impetus can be maintained as
long as the market is not flooded with out of spec cattle, especially
cows.
“Some Scottish slaughterers have stood on at 222p for an R4L bullock while
others have kicked off at just 216p but the latter could still be persuaded to
pay more if finishers don’t just accept the first offer but ring round
to make sure they are selling cattle at the best price,” explained NBA
director, Kim Haywood.
“At the same time some of the biggest English slaughterers have said they
are not going to take advantage of more difficult trading conditions for finishers
and have already raised their prices by 2p compared with pre-FMD levels.”
According to the NBA regular deadweight suppliers should be able to prise more
money from their buyers if they play their cards right but it concedes that finishers
who previously used auction markets are more vulnerable.
“These should avoid the big plants that service supermarkets and concentrate
on medium sized, multi-species, abattoirs which sell to butchers and caterers.
Many of these companies were purchasing cattle out of markets so some auction
finishers will be able to contact their usual buyers direct,” advised Ms
Haywood.
“The NBA recommends that all finishers should stick out for at least what
they were given up to August 4th and then try to get more. They should remember
stocks of UK beef have been depleted due to the week long suspension in slaughtering,
and more domestic customers are demanding UK beef not imports.”
“No one should be in a hurry to sell stock and no one should be tempted
into selling any animals that are under finished because the latter would be
entirely unproductive.”
“Feeders with cows that can put on weight without getting fat should hold
them instead of offering them immediately. This especially applies over the coming
week while slaughter operations, and the licensing system, are still grinding
into gear. No one should be in a hurry to sell,” said Ms Haywood.
“However the situation in Northern Ireland is quite different. Last week’s
prices were steady but large volumes of forequarter stocks have already been
cleared and the prime cattle market in the Province will no longer be suppressed
by the delivery of significant numbers of auction sourced cattle from the British
mainland.”
“This suggests much higher prices for Northern Ireland’s finishers
while FMD restrictions are maintained in Britain and Northern Ireland alone supplies
the export market for British beef.”
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