United Kingdom-Beef Farming outlook very positive.

UNITED KINGDOM-GOOD NEWS FOR BEEF FARMERS.

Beef farmers have received a further boost from the latest market figures published by Eblex.

The industry body said the continued contraction of the size of herds would mean demand outstripped supply, pushing prices higher.

Although the recession is set to reduce demand for more expensive cuts in the UK, the growing demand for mince is predicted to continue.

And the weakness of sterling against the euro means demand for exported British beef is likely to remain high.

Finished cattle prices in 2008 were 26% higher than 2007, thanks to the continued decline in the number of slaughterings, higher export and static import levels.

The number of prime cattle slaughtered is expected to fall below two million this year and cow slaughtering is expected to drop from around 560,000 head in 2008 due to the decline in eligible animals remaining on-farm. Eblex also expects to see a fall in feed prices and improved grass growing conditions this year.