The eternal battle on cattle prices

You'd be forgiven for believing that beef farmers were having a good time at the moment based on the renewed air of confidence in the sector.

Yes, prices are improving, but they still have a long way to go if farmers are to make any margins on finishing cattle this spring.

The eternal battle on cattle prices is fought out every year, but it's rarely a battle won by the farmer. At current costs of production, a substantial and sustained price rise is needed. The exact price is specific to each producer as efficiencies will differ, but it will need to be in the range of 320-350c/kg.

Currently, producers are receiving 312-320c/kg, but with numbers reported to be scarce and factories finding it increasingly difficult to get their hands on cattle, there is cautious optimism that prices will increase more as we move into the spring.

The ban on Brazilian beef can only be positive and, while we still don't know just how many cattle are in the 300 herds allowed to export to Europe, it will be a lot less than what was previously being shipped in. Already, there is a significant demand for cows, both in the factories and the marts, confirming the huge demand for manufacturing beef both at home and in the UK.