LMC:Surge In GB Farmgate Prices Since July/August
NORTHERN IRELAND, UK - Farmers have enjoyed strong increases in beef prices over recent weeks and in Scotland the U3 steer price reached 342p/kg in the week ending 10 September. The average U3 steer and heifer price across GB is now 335p/kg. Even in Southern
England, where prices typically lag behind the rest
of GB, U3 steer prices averaged 330p/kg in the
first full week of September.
R3 Steer Prices
Figure 1 plots R3 steer prices across the British
Isles over the course of the year to date. It shows
prices for Scotland and Southern England, the two
regions which typically have the highest and lowest
cattle prices in GB.
It also shows average GB, NI
and ROI prices. The chart clearly illustrates an
improving trade in GB.
The figures show that there has been a steady rise
in Scottish R3 steer prices since the spring. While
there was a lull in English prices early in the
summer, prices there have also risen steadily since
June / July, with a veritable surge in English
farmgate prices during August.
The figures for the week ending 10 September
2011 show a North / South split when it comes to
R3 steer prices across the Great Britain.
Scottish
R3 steer prices averaged 336p/kg the week
before last. Northern England prices were 4p/kg
lower at 332p/kg, while in the English Midlands
and Wales prices were a further 5p/kg back at
327p/kg.
Southern England prices were lower
again at 324p/kg.
While English R3 steer prices have surged ahead
during August, Figure 1 shows how NI prices have
remained fairly steady during that period. In ROI,
R3 steer prices have declined during August/
September.
The latest reported prices show that in
NI, R3 steer prices averaged 312p/kg in the week
before last, 12p/kg lower than corresponding
prices in Southern England; 24p/kg lower than
corresponding Scottish prices.
Prices in ROI were
9p/kg lower than NI levels; 33p/kg lower than
Scottish levels.
The trends in R4 steer and R3 heifer prices have
been broadly similar, with prices generally steady
in Ireland, while the trade in GB has been much
stronger recently.
One explanation for these regional trends in prime
cattle prices may be supply. NI supplies appear to
have improved somewhat in August having been
much tighter back in the spring and early part of
summer.
However, the expectation is that GB
supplies which were much stronger earlier in the
year have now peaked. Any decline will have
contributed to the upward pressure on prices.
Cow Prices
Figure 2 shows trends in cull cow prices across the
UK for the year to date (average cow prices are not
available from ROI).
Again Figure 2 picks out
Scotland and Southern England for analysis.
These are generally the areas with the highest and
lowest performing cull cow prices.
Figure 2 also
shows average GB and NI cow prices. It is clear
that Scottish prices are generally much higher than
the GB average, while Southern England prices
have been much lower.
NI prices have been
generally quite close to average GB levels over the
course of the year to date. The latest weekly
figures show that NI cull cow prices are 10p/kg
less than the GB average.
By contrast, average
Scottish cull cow prices averaged 270p/kg in the
week ending 10 September. This was 16p/kg
more than the GB average and probably reflects
the greater prevalence of specialist beef breeds in
Scotland relative to the rest of the UK.
TheCattleSite News Desk