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Stackyard News Jul 06

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Heat Makes Cattle Prices Take A Dip

INDUSTRY fears about the current dip in cattle prices have been discussed in depth at a board meeting of the English Beef and Lamb Executive (EBLEX).
beef cattle

The message that came out of the discussions for English beef producers was the underlying market structure was good and that producers should avoid any panic selling of under-finished stock.

EBLEX Chairman John Cross said the very hot weather and the start of the holiday season have hit consumer demand for beef. Also in some areas there is a shortage of good grass for finishing which has reduced the quality of some beef animals being presented for slaughter. These factors are at the root of the price fall.

He said: “The domestic market is in good shape. Market mechanics are totally different today from a year ago. There is less South American beef available, and on top of that there is good export demand for our beef.

”We would urge producers to continue to market animals in an orderly fashion and properly finished and this will help the market to right itself.

“If producers are tempted to market cattle early in the fear that prices could fall further, they will merely imbalance supply and demand with the result being further downward pressure on farmgate prices.”

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