Nearly 400,000 cows smoothly re-entered the food chain in 2006 following the ending of the Over Thirty Month Scheme (OTMS).

Altogether these added an extra 115,000 tonnes of beef to domestic supplies without causing any market weakness. From last spring finished cattle prices proved a consistent 10-15p/kg deadweight higher than in the previous year, with cull cow prices remaining comfortably above previous OTMS values.

EBLEX Policy Adviser, Mark Topliff said: "This encouraging market strength resulted from a combination of the continued decline in prime cattle slaughterings, significant import substitution and a growing export trade following the lifting of the bone-in export ban in early May. Since this industry watershed British beef exports have grown from under 1,000 tonnes/month to over 7,000 tonnes/month and are forecast to continue increasing through 2007 as continental markets are progressively re-established."

He said that, with current exports running at well under half pre-BSE levels, there is considerable potential for further recovery over the coming year.

Source: icNewcastle.co.uk