Written by Eva Osborne-Sherlock from Agriland
Hybu Cig Cymru-Meat Promotion Wales (HCC) has said the beef market could witness “greater stability” in 2025 following the easing of short term economic and supply impacts.
HCC analysis of data underpinning supply and retail trends suggests the longer-term picture for beef prices could improve on the current experience of small week-on-week declines.
HCC intelligence, analysis and business insight executive, Glesni Phillips, said several factors contribute to the present, almost weekly, marginally lower adjustment in prime cattle prices.
“Increased short term domestic supply; increased imports of Irish cattle and sluggish retail demand,” she said.
She said the beneficial effects of these higher prices had been “somewhat negated by rising key farm input costs for beef producers, that have been fueled by huge inflation rates, which had put pressure on the profitability of businesses”.
Deadweight prices for steers opened the year close to £4.90/kg, peaked at £4.95 at the start of March but each week since has seen decline to the current near £4.77/kilo.
Heifers and young bulls have also followed this course, with heifers currently around £4.74 (-7p year-or-year) and young bulls round £4.68 (-9p yoy).
The cull cow marked has bucked the trend, with largely positive price movements to stand at around £3.59/kilo– some 45p higher than the average recorded during the first week of January.
Looking at supply, available data indicates that the slight increased numbers of prime beef cattle and dairy males aged 12-30 months will continue in the short term,.
Potential supply up 2% on the year at around 1.8 million head as of April 1, 2024, according to the British Cattle Movement Service (BCMS).
However, breeding herd trends over the past decade show a notable decline, largely due to a combination of economic, policy, technological, and environmental factors putting pressure on both the beef and dairy sectors, the HCC said.
“These include, high production costs, market volatility, changes in government subsidies, various TB restrictions, and pressures surrounding environmental impacts have all put pressure on the industry,” Phillips said.
“This has been partially mitigated by technological advancements and better herd management practices and beef production has been relatively stable despite these herd contractions.
“In the longer term – looking at the end of this year and into 2025 – these factors are expected to impact domestic supplies. GB data suggests the potential supply of prime beef cattle and dairy males aged 0-12 months is down three per cent on the year at 1.9 million head of cattle.”
Phllips said this reduction in youngstock numbers was to be expected as calf birth registration numbers in GB last year fell more steeply than in previous years.
“We’ve seen this trend continue into quarter one of 2024, which suggests that supply further down the line will remain tight.
“These contributing factors all add up to the likelihood of greater market stability as they filter through towards the end of 2024.”
The post Beef market could have ‘greater stability’ in 2025 – HCC appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
HCC analysis of data underpinning supply and retail trends suggests the longer-term picture for beef prices could improve on the current experience of small week-on-week declines.
HCC intelligence, analysis and business insight executive, Glesni Phillips, said several factors contribute to the present, almost weekly, marginally lower adjustment in prime cattle prices.
“Increased short term domestic supply; increased imports of Irish cattle and sluggish retail demand,” she said.
She said the beneficial effects of these higher prices had been “somewhat negated by rising key farm input costs for beef producers, that have been fueled by huge inflation rates, which had put pressure on the profitability of businesses”.
Prices
Deadweight prices for steers opened the year close to £4.90/kg, peaked at £4.95 at the start of March but each week since has seen decline to the current near £4.77/kilo.
Heifers and young bulls have also followed this course, with heifers currently around £4.74 (-7p year-or-year) and young bulls round £4.68 (-9p yoy).
The cull cow marked has bucked the trend, with largely positive price movements to stand at around £3.59/kilo– some 45p higher than the average recorded during the first week of January.
Looking at supply, available data indicates that the slight increased numbers of prime beef cattle and dairy males aged 12-30 months will continue in the short term,.
Potential supply up 2% on the year at around 1.8 million head as of April 1, 2024, according to the British Cattle Movement Service (BCMS).
However, breeding herd trends over the past decade show a notable decline, largely due to a combination of economic, policy, technological, and environmental factors putting pressure on both the beef and dairy sectors, the HCC said.
Pressure factors
“These include, high production costs, market volatility, changes in government subsidies, various TB restrictions, and pressures surrounding environmental impacts have all put pressure on the industry,” Phillips said.
“This has been partially mitigated by technological advancements and better herd management practices and beef production has been relatively stable despite these herd contractions.
“In the longer term – looking at the end of this year and into 2025 – these factors are expected to impact domestic supplies. GB data suggests the potential supply of prime beef cattle and dairy males aged 0-12 months is down three per cent on the year at 1.9 million head of cattle.”
Phllips said this reduction in youngstock numbers was to be expected as calf birth registration numbers in GB last year fell more steeply than in previous years.
“We’ve seen this trend continue into quarter one of 2024, which suggests that supply further down the line will remain tight.
“These contributing factors all add up to the likelihood of greater market stability as they filter through towards the end of 2024.”
The post Beef market could have ‘greater stability’ in 2025 – HCC appeared first on Agriland.co.uk.
Continue reading on the Agriland Website...
