UK Livestock Market: Prices Up, Slaughter Down

Weekly Cattle and Sheep Market Wrap: Prices Rise Amid Slaughter Decline

Cattle Market
The GB overall all-prime cattle price saw a substantial increase of 10p/kg week-on-week, reaching 663p/kg. R4L prices for both steers and heifers climbed to 675p/kg, reflecting strong market demand. The estimated slaughter number for prime cattle was notably down, with a 5% decrease compared to the previous week.

In the week ending 15 March, GB deadweight cattle prices continued their upward trend. Overall steer and heifer prices grew by 10p/kg from the previous week, reaching 665p/kg and 663p/kg respectively. Young bulls also saw a similar increase, up 11p to 644p/kg. Deadweight cow prices rallied after muted growth in the previous week, showing an increase of 9p/kg to reach 495p/kg. This rise is the greatest for a month, suggesting it is following similar trends to prime cattle.

The estimated slaughter for GB prime cattle was down for the week ending 15 March, with an estimated kill of 33,800 head, representing a 5% drop compared to the previous week. Cow estimated slaughter followed a similar trend, down 700 head to an estimated 8,400 head.

Red meat retail performance indicates that although prices have begun to increase year-on-year, with the average price paid up 5.7%, volumes have remained relatively constant. This suggests good demand for beef despite the consumer starting to see some uplift in prices, which will be an important watchpoint over the coming months.

Sheep Market
For the week ending 15 March, the GB deadweight old season lamb SQQ averaged 739p/kg, remaining flat compared to the previous week. This price is down 51p compared to the same week in 2024. The estimated kill was down by 10,500 head on the previous week, totaling 225,700 head, a significant drop of 4.5% on the week and 6% on the year.

Reports suggest that heavier stock appears to be dominating the market. This is supported by Defra carcase weights in February 2024, showing a slight month-on-month uplift, indicating that larger lambs that have had more time to grow are supporting supply at this time.

As the market continues to evolve, stakeholders will be closely monitoring these trends to make informed decisions. The rise in cattle prices and the steady lamb prices amidst declining slaughter numbers highlight the dynamic nature of the livestock market.

Original story: AHDB

Sainsbury’s and Cranswick Forge 10-Year Supply Partnership

Sainsbury’s has strengthened its relationship with meat and poultry giant Cranswick through a new 10-year supply agreement. Under this deal, Cranswick will provide all of Sainsbury’s British pork, sausages, premium bacon, gammon, and cooked meats.

This partnership aims to offer longer-term contracts and greater financial stability for the 170 farmers who supply Cranswick via the Sainsbury’s Pork Producer Group. The companies believe this will give farmers the confidence to invest in farms, factories, and procedures, thereby building resilience for the future.

The collaboration is also set to enhance welfare standards for the By Sainsbury’s British pork range, exceeding Red Tractor standards while maintaining great value for customers. The Taste the Difference pork range will continue to meet the RSPCA Assured standard, as it has for the past 17 years.

Rhian Bartlett, Sainsbury’s chief commercial officer, highlighted the benefits of the partnership: “This 10-year partnership with Cranswick means that we are able to place a bigger focus on animal welfare, financial security for our farmers, and sustainable production of our pork range; all while protecting value for customers.”

Sainsbury’s plans to invest £50 million to implement new production standards by 2030, with Cranswick contributing an additional £11 million to build new sheds and housing for pigs. This includes investment in flexible farrowing accommodation, providing extra space for sows and piglets.

The introduction of AI technology will enable 24/7 monitoring of the animals, informing improvements to welfare. Jim Brisby, Cranswick’s chief commercial officer, stated, “The purpose of the new partnership is to provide a total supply chain approach delivering a robust and differentiated consumer offer across British pork-related categories including fresh joints and steaks, sausages, cooked meats, and premium bacon and gammon.”

Bartlett added, “There is an ever-evolving relationship between retailers, farmers, and processors, but we hope this news serves as a good example of what is possible when people come together in the food system.”

Original story: The Grocer

China Renews U.S. Meat Export Licenses

Beijing has renewed registrations for hundreds of U.S. pork and poultry facilities, allowing them to continue exporting to China.

This move comes as a relief to U.S. farmers and meat companies, who have been navigating trade disputes with major agricultural importers, including China and Canada.

The renewals, which extend until 2030, were confirmed on China’s customs website. However, registrations for hundreds of U.S. beef facilities remain listed as “expired.” This situation has left U.S. exporters uncertain about the future of their shipments, as registrations for more than 1,000 U.S. meat plants granted under the 2020 “Phase 1” trade deal lapsed on Sunday.

The “Phase 1” trade deal, signed in 2020, aimed to end the previous U.S.-China trade war with a pledge from Beijing to boost its purchases of U.S. goods and services, including meat, by $200 billion over two years. Despite this agreement, China did not reach the target, which was set shortly before the COVID-19 pandemic hit.

Shipments from facilities with lapsed registrations have continued to clear customs, but U.S. exporters remain unsure how long this will last. The U.S. Department of Agriculture has expressed concerns that China did not respond to repeated requests to renew plant registrations, potentially violating the Phase 1 agreement.

The renewals for pork and poultry are a positive development, but the uncertainty surrounding beef exports continues to pose challenges for U.S. meat producers.

Original story: Reuters

Newcastle Disease Spreads in Polish Poultry

Poland continues to grapple with Newcastle disease, as three more poultry flocks have been infected. On March 11, the World Organisation for Animal Health (WOAH) confirmed the presence of the disease in two flocks in Radomyśl Wielki and one flock in Unieck. The Unieck farm had 144,326 susceptible birds, while the Radomyśl Wielki flocks had 24,170 and 13,486 birds.

WOAH described the birds in these flocks as domestic poultry. Control measures being applied include stamping out, movement control, disinfection, zoning, surveillance within the restricted zone, traceability, and official destruction of animal products.

These new instances bring the total number of poultry flocks in Poland affected by Newcastle disease to 37 since WOAH first reported on the situation in 2024. Collectively, these 37 flocks have included 4,917,499 birds.

Currently, WOAH has active reports on Newcastle disease in three countries: Poland, Slovenia, and Israel. Sweden had earlier been dealing with an outbreak, but WOAH reported in January that the situation there had been resolved.

Original story: WATTPoultry

U.S. Meat Exports to China Threatened as Export Registrations Lapse

Beijing, March 17 (Reuters) – Export registrations for over 1,000 U.S. meat plants granted by China under the 2020 “Phase 1” trade deal lapsed on Sunday, according to China’s customs website. This development poses a significant threat to U.S. exports to the world’s largest buyer amid an ongoing tariff standoff.

The registration status for pork, beef, and poultry plants across the U.S., including those owned by major producers Tyson Foods, Smithfield Packaged Meats, and Cargill Meat Solutions, was changed from “effective” to “expired,” as reported by China’s General Administration of Customs. Reuters had previously reported on Friday that these registrations were at risk of lapsing.

The expiration of registrations for roughly two-thirds of the total registered facilities could severely restrict U.S. market access and potentially lead to losses of approximately $5 billion. This situation adds to the challenges faced by American farmers, especially after Beijing imposed retaliatory tariffs on about $21 billion worth of American farm goods earlier this month.

While registrations for around 84 U.S. plants lapsed in February, shipments from these plants continue to clear customs. However, it remains uncertain how long China will allow these imports to continue. Beijing requires food exporters to register with customs to sell their products in China, making the registration process crucial for maintaining market access.

This development could have significant implications for the U.S. meat industry and its trade relations with China.

Original story: Reuters

AIMS Calls on DHSC to Review FSA’s Meat Inspection System

AIMS Calls on DHSC to Review FSA’s Meat Inspection System

On the day the Chancellor meets with leading regulators to discuss reducing business burdens and promoting growth, the Association of Independent Meat Suppliers (AIMS) has published a report titled “A Strategic Review of Cost-Saving Opportunities in the FSA’s Meat Inspection System.” The report identifies up to £22 million per annum in potential savings through a detailed analysis of the Food Standards Agency’s (FSA) current cost structure.

Dr. Jason Aldiss, Executive Director of AIMS, highlighted longstanding issues with the FSA’s third-party contractor: “We have known for a long time that the third-party contractor used by the FSA has failed to deliver the staff and levels of service required by the contract, resulting in at least £1.7 million in additional payments without any sign of service improvements.”

The report reveals wasteful duplication of managerial structures between the FSA and its contractor, attributed to a lack of effective ministerial oversight for many years. This inefficiency has burdened the meat and poultry processing sector with excessive charges and costly administrative burdens, placing the UK at a disadvantage compared to other livestock processing countries.

Dr. Aldiss pointed out that the UK’s meat inspection costs are significantly higher than those in comparable European countries such as France and Ireland, with businesses paying up to four times more than their EU counterparts.

At a time when the Department for Health and Social Care (DHSC), which sponsors this arm’s length quango, is looking to recover wasted taxpayer money, and the UK Government is focused on growing the economy through exports and controlling inflation, the FSA’s meat inspection system and associated costs have risen unchecked. AIMS urges the Secretary of State to review their report and meet with them at the earliest opportunity.

This call for action underscores the need for a strategic review to ensure the meat inspection system is both efficient and cost-effective, benefiting the industry and the economy as a whole.

UK Butchers Grapple with Unprecedented Beef Price Hikes

The beef industry is facing a significant challenge as prices continue to soar, with deadweight prices fast approaching £7 per kg and liveweight prices nearing £3000 per head.

This situation is causing concern among butchers and processors, who fear that the current pricing is unsustainable and could lead to serious problems in the future.

Grant Moir, managing director of AK Stoddart, has expressed his worries about the disconnect between farm-gate prices and the actual market value. He warns that a correction by retailers could have a detrimental impact on the industry. Since Christmas, the price of finished cattle has seen substantial increases, with values jumping by 15p per deadweight kg per week, according to AHDB figures. There is growing speculation that prices may break the £7 per kg barrier by the end of March.

John Carlisle from Border Meats highlights the impending price hikes on supermarket shelves, which have not yet been reflected in retail prices. He notes that the previous margins in the beef trade have been wiped out, and the supply chain cannot continue to absorb the high farm-gate prices. Some butchers have already raised their prices, but this has affected footfall in their shops. Carlisle points out that the cost of purchasing cattle has increased by £600 per head since Christmas, and consumers may need to pay 50% more for beef, rather than the 10% rise currently seen on shelves.

The potential price increase could see typical sirloin steaks sold in supermarkets rise from £28 per kg to £42, and weekend deals like two steaks for £10 could jump to £15. This could lead consumers to seek alternative meal options.

Farmer and Forres butcher Jock Gibson adds that if farmers and processors need £7 per kg to maintain their operations, consumers will have to pay more than they currently do. However, he is uncertain whether consumers and the food service sector are willing to accept these higher prices. Gibson warns that the industry may resort to importing beef to fill the gap if domestic prices continue to rise.

Original story: The Northern Farmer

China’s Huaxi Cattle Breed to Make International Debut

China’s Huaxi Cattle Breed to Make International Debut in Laos

BEIJING, March 14 (Xinhua) — China’s “Huaxi cattle” breed will make its first international appearance under a beef cattle breeding cooperation project with Laos, the Chinese Academy of Agricultural Sciences announced on Friday.

The project, signed in Vientiane earlier this week, will see China export 100,000 doses of frozen semen and 10 breeding bulls of the Huaxi cattle to Laos. The goal is to enhance the efficiency of beef cattle breeding and cultivate high-quality breeds in the Southeast Asian nation, according to the academy.

“This marks an important step for China’s beef cattle breeding industry into the global market, laying a solid foundation for its international development,” the academy stated.

The Huaxi cattle breed is the result of over four decades of research efforts and offers rapid growth, high-quality meat, and strong adaptability, with performance metrics matching international advanced levels. A mature bull weighs up to approximately 900 kg.

Some 23,400 Huaxi cattle have been bred across 12 Chinese provincial-level regions, supported by an advanced breeding database in addition to a network of breeding farms and bull stations, the academy reported.

Original story: Xinhua

Australian Cattle and Sheep Market Update

Weekly Cattle and Sheep Market Wrap – 14 March 2025

Key Points:

Cattle slaughter and yardings continue to be impacted by ex-Tropical Cyclone Alfred.
A rejuvenated interest in the restocker market has been driven by the return of domestic processors.
Despite sheep slaughter easing, combined sheep and lamb slaughter remained just below 700,000 head processed.

Cattle Market

The cattle market has been generally positive except for the Restocker Yearling Heifer Indicator. Yardings experienced a significant reduction of 31,624 to 43,942 head. This reduction is largely due to the impacts of ex-Tropical Cyclone Alfred and New England producers holding onto cattle in the hopes for rainfall.

Due to weaker overall supply, there were some lifts in cattle prices. Strong export market competition drove a 25¢ lift in the Dairy Cow Indicator to total 242¢/kg liveweight (lwt). Prices increased in all states, with Victorian prices lifting a notable 27¢.

At Wagga, producers were optimistic about rainfall from ex-Tropical Cyclone Alfred, resulting in a price lift of 18¢ for the Restocker Yearling Steer Indicator. Nationally, prices lifted by 11¢ to 364¢/kg lwt. A rejuvenated interest in the restocker market has been driven by the return of domestic processors.

Sheep Market

With the return of domestic processors back onto the rail, there has been greater interest in trade lambs. This has led to a 9¢ lift for the Trade Lamb Indicator to 795¢/kg carcase weight (cwt). Prices eased in most states, noting a 1¢ drop in Victoria and an 8¢ lift in NSW.

Market reports noted a reduced number of heavy lambs, particularly those over 30kg. An increased supply of lighter lambs drove prices down by 17¢ to 729¢/kg cwt.

Slaughter

Week ending 7 March 2025

Cattle slaughter eased by 14,116 to 133,017 head, largely caused by significant reductions in Queensland (13,967 head) – processors shut down due to ex-Tropical Cyclone Alfred. Slaughter in NSW (154 head), SA (15 head) and Victoria (405 head) remained stable, only lifting slightly.

Combined sheep and lamb slaughter eased by 25,618 to 699,627 head, and sheep slaughter eased by 13,756 to 205,728 head. This drop was driven by slower Victorian (5,374 head) and WA (11,758 head) slaughter. However, NSW slaughter lifted by 2,634 head and sheep slaughter remains 1.4% above slaughter compared to the same time last year.

Lamb slaughter eased by 11,862 to 493,899 head. Despite slaughter easing, capacity continues to hover at around 500,000 head a week. The reduction was driven by easing in NSW (3,685 head), Victoria (1,484 head) and WA (6,427 head). Lamb slaughter remained positive in Queensland (17 head) and SA (705 head).

MLA

Irish Lamb Prices Drop Amid Tight Supplies and Stable Demand

Lamb Prices and Supply Trends

Base quotes from major processors for well-finished lambs have fallen this week, ranging from €8.70/kg to €8.80/kg (+QA bonus). Processors and agents are maintaining a firm stance on carcass weight limits, operating off a 23kg carcass weight.

Relatively tight lamb supplies, combined with stable demand from domestic and export markets, have contributed to the firming of trade throughout 2024.

Eurostat figures indicate a contraction in breeding flock numbers in many regions of Europe and the UK. The Irish ewe flock contracted by 3.7% in the December 2023 census compared to December 2022 levels, contributing to the tightness in supplies.

Price Trends

The reported deadweight price for the week ending 8th March decreased by €0.03/kg to €8.78/kg, reflecting the second consecutive week of price drops from major lamb processors. In the corresponding week in 2024, the deadweight price was €7.90/kg.

The deadweight trade has slightly improved across UK regions, with reported lamb prices in mainland GB equivalent to €8.79/kg last week (+4c/kg). In Northern Ireland, there was a larger decrease to €8.06/kg (-30c/kg).

Southern Hemisphere prices remain well below European prices but have improved significantly over the last few weeks, narrowing the price differential with the EU. Prices this week are at €4.56/kg and €4.45/kg for Australia and New Zealand.

Throughput

There was a decrease in the total sheep kill in DAFM-approved plants last week to 47,602 head, compared to 61,248 in the same week in 2024.

Tighter supplies have been a feature of the 2024 lamb season, with a smaller lamb crop, difficult lambing, and changeable grass growing conditions impacting lamb availability for processing. Total year-to-date slaughter is down 22% on 2024, totalling 398,887 head.

Bord Bia