Meat Market Update

Beef

Prime cattle prices have come under pressure as supply outstrips demand with reports, once again, of some disruption at abattoirs.  In the week ending 11^th April the deadweight GB all prime cattle price was 342.5p per kg, a 4p per kg drop on the week, which according to the AHDB is the largest week-on-week fall since May 2014.  It also means that the all prime deadweight average has fallen by 10p per kg in the last four weeks.  However, those meeting the R4L specification are receiving about 10p per kg more at 352.7p per kg for steers and 352.1p per kg for heifers.  The latest carcase classification results for AHDB show that 52% met the R4L or better classification or better in 2014 compared to 51% in 2013.

A tightening of supplies in 2015 has been forecast and slaughterings for March suggest that this may already have commenced.  But an upturn in demand is not looking likely, particularly for roasting joints, as the weather continues to pick up.  Further downward pressure is applied from the exchange rate making Irish beef more competitive; prices do not look like improving in the near future.

Lamb

Now that Easter is over, the lamb price has eased.  The old season liveweight lamb SQQ price for the week ending 15^th April was 196.8p per kg; 3p per kg lower than the previous week.  The increase in the number of new season lambs compared to the previous week saw prices drop significantly, by 25p per kg liveweight to 241.8p per kg.  Prices for old season and new season lamb are currently at about 13p per kgand 20p per kg liveweight respectively less than year-earlier levels, although Easter was later last year which will have had an impact on prices.

Lamb slaughterings in March continue to be higher than 2014 levels.  Slaughterings have been higher in each month for a whole year now.  Slaughterings for the first quarter of 2015 were 11% higher than for the corresponding quarter in 2014.  In contrast, with producers looking more towards increasing their flock sizes rather than reducing them, adult slaughterings have been falling, down 21% in March compared to February.  But an increase in carcase weight (20.5kg) together with the increase in lamb slaughterings more than offset the reduction in adult slaughterings in March.  Total production for the month was 10% higher than March 2014 at 22,400 tonnes.  Looking ahead it is difficult to see where any price rise will come from without an increase in domestic demand.  The strength of Sterling compared to year earlier levels is making exporting difficult for producers and this year’s lamb crop looks set to be good.