Dairy farmers across the UK are enjoying an unexpected bonus thanks to the increased consumer demand for cheaper cuts of meat which have driven cull cow prices up dramatically at local auction marts.
This follows a situation three years ago when there was simply no market for their animals and the only payment available was under the government’s Over Thirty Month Scheme (OTMS).
Producer John Crowther, who milks 200 cows on his farm just north of Annan, near the Scottish Borders, says he has seen a significant increase in the prices he receives for the cull cows he sells at Borderway Mart in Carlisle in the past year.
"We have regularly been receiving £850 to £900 per animal, with some reaching £1,000 over the past 12 months, compared with around £200 a per head we were receiving before.
"Now I tell the auctioneer what sort of price I am looking for when our cows come into the ring and I am pleased with what they have been making," says Mr Crowther, who sells between 50 and 60 cull cows at the mart every year. "I think it is important to have that open competition between buyers at an auction. It helps drive the prices."
Borderway Mart operations director David Pritchard explained that tight supply and high demand in the beef trade was the overriding reason for this year’s higher prices.
"National cattle numbers overall seem to be down this year and the euro exchange rate has also led to greater competition between home market buyers and those buying cattle destined for export.," said Mr Pritchard. "In July a typical average price was 95p per kg for cull cows, compared with 82p at the same time last year. Prices have now risen above pre-BSE prices in 1996.
In Frome, Somerset, Mark Northcott who auctions the prime cattle and the cull cows, confirms the trade for cull cows remains very strong.
"Competition is strong for all categories of cull cows with more buyers looking to the cows to satisfy the processing end of the market providing cheaper cuts and minced beef," he says.
Carmarthen Mart auctioneer Huw Evans says the market for cull cows is also very strong in Carmarthen, with the better dairy cows making 110p per kg on average.
"There are definitely more buyers coming to the auction now, driven by the overall shortage of beef animals and attracted by the number and choice of animals we are maintaining each week," he says.
Mr Northcott adds: "The markets work well as sorting offices. A group of animals from the same farm vary in type and weight, but in the market buyers can purchase whichever animal best suits their particular needs, be it plain or best quality. It means the buyer is less likely to have to compromise on price at any stage.
