Prime cattle prices firm but remain 8.5% below last year's levels

According to Quality Meat Scotland (QMS), one of the contributing factors behind the downturn was a general increase in supply, with the total volume of beef available in the UK rising over the past four years.

Iain Macdonald, QMS senior economics analyst, said overall supply rose by another 3 per cent in 2018, with a 5.4 per cent increase in exports unable to offset a 2.2 per cent lift in domestic production and a 6 per cent rise in imports.

Significant

“This is likely to have resulted in a significant carryover of stocks into 2019,” he said.

Beef production grew further in the first half of 2019, driven by higher prime beef production with throughputs up 0.5 per cent and carcase weights up 1.2 per cent.

A near 2 per cent reduction in cow slaughter was offset by a similarly sized rise in carcase weights.

Although UK exports rose by about 8 per cent and imports contracted by a similar degree in the January to May period, this was not enough to balance the market.

Demand

Consumer demand has also acted as a significant headwind with the weather altering the balance of sales.