Where next for GB cattle prices?
GB deadweight cattle prices have shown remarkable strength so far in 2023, with prime cattle and cull cows posting weekly gains since the start of the year. In the week ending 25 February, the GB overall average steer price reached 480p/kg, up 71p from the same week a year ago. At the same time, the overall deadweight cow measure averaged 379p/kg, up 80p year-on-year.
The price rises come despite pressures on retail and consumer spending, linked to higher cost of living and price inflation. So, what other factors are at play?
The UK beef market came into 2023 following a tighter supply situation in 2022, keeping prices elevated. A slight uplift in production, balanced with relatively stable imports and growth in exports pointed to lower available beef supplies for consumption during the year. This was particularly prevalent during the third quarter. Supplies grew in the fourth quarter as cattle slaughter rose ahead of Christmas and winter housing, but firm demand kept prices high.
On the continent, a similar story is expected to play out for production levels in 2023. Output fell from several of the key producing countries in 2022, including France and Germany, off the back of reduced breeding herds. Industry forecasts expect this trend to continue in 2023, with total production for the bloc expected to fall by between 0.5-0.7%.
Hannah Clarke / AHDB
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