The continued strong beef prices at the livestock marts, up almost 25% on last year, is encouraging Scotland’s beef farmers to “stick in”.
This is according to Alan Hutcheon, president of the Institute of Auctioneers and Appraisers (IAAS), who notes that cattle prices are riding higher than ever.
“Everyone is looking for stock, and we’re seeing more choosing to sell at auction and new buyers at marts across Scotland, some up from England,” he says.
Although the prices will inevitably level off at some point, Mr Hutcheon says it’s good to see this confidence in sales, as that confidence goes back to the farm.
“Some are seeing £400 more on a beast than this time last year, which if you look at inflation is about right,” he explains.
The jewel in the crown is the farrow cows, prime and store cattle, but sheep are seeing the same positive patterns as last year, he adds.
“Costs are also up but for many farmers, we’re hearing, this is giving them the confidence to keep in beef, and for some to keep investing for youngsters in the family to take over, or to take on more labour.”
Neil Wilson, executive director of IAAS, says this price adjustment is what should be happening in the market, adding it has been needed for a long time.
“To break even for suckler beef is quoted at between £3.50/kg and £3.90/kg so most farmers have been losing money,” Mr Wilson explains.
“The value of an artic load of finished cattle leaving the farm is now over £100k, it doesn’t feel that long ago that it was around £60k.
“This difference is substantial and very encouraging for the trade, but there does need to be an element of caution not to rush heifers off for store markets, and to keep older cows and ewes longer, to ensure that core suckler and breeding ewe numbers are kept up.
“Otherwise, the demand for Scottish livestock won’t be met by supply for the long term,” he concludes.
