Beef market monthly update - October 2022

GB deadweight prime cattle prices continued a steady upward trend in October. Prices rose each week and remain considerably higher than in 2021 and the 5-year average.

Cull cow prices however have been steadily declining since July. However, like prime cattle averages, prices are still substantially higher than this time last year and the 5-year average.

GB store cattle prices have also generally eased over recent weeks compared to year-ago levels, not maintaining the rate of year-on-year growth seen in the finished market.

Input prices are still high, remaining significantly above year earlier figures and despite record high prices seen this year, farmer margins will be feeling the pressure. Although feed ingredient prices have eased from pre-harvest highs, tight supplies are keeping prices supported as we enter winter peak demand. The September figures for GB animal feed usage show GB animal feed compound production fell by 5.8% (Jul – Sep). Nearby ICE Natural gas prices are still at historically high levels, reducing domestic production and increasing imports which is sustaining high prices.

UK production dipped month on month in September. A slight easing of carcases weights for both prime cattle and cows in September has offset the higher slaughter figures, keeping total production relatively flat year on year.

Imports so far this year (Jan-Aug) have been rising year on year, however they remain below pre-pandemic levels. Exports of fresh and frozen beef to the EU grew year on year, bolstered by a weakening GB pound as well as a return to normalcy of trade following Brexit. Higher shipments to the EU are anticipated to continue for the remainder of the year according to the EU short term autumn outlooks.

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