According to the UK National Beef Association (NBA), abattoirs across the UK are using the ending of the OTMS (over thirty months slaughter) at the close of business on January 20, as an excuse to pull down prime cattle prices – even though supplies of finished stock on farm are tight and chill room beef stocks are low.

Many slaughterers are looking for a chance to knock back prices and one of their habitual ploys is to create the impression of a falling market because this can persuade finishers to rush cattle forward before they are hit with further income losses,” explained NBA chairman, Duff Burrell. However finishers should demonstrate their refusal not to be panicked into selling cattle at the wrong time by keeping as much stock as they can off the market until the processors' bluff is called. It may take a week or two for this message to sink in but we know slaughterers are looking for prime cattle and if they meet enough supply resistance they will have to offer more money to bring them out.”

According to the NBA many slaughterers will protest that the appearance of more cows, especially dairy cows, on the commercial market from January 23 will put pressure on prime cattle forequarter values. However it believes that the EU beef market is short supplied and has also noted that prime cattle prices in the Republic of Ireland, which is the source of most forequarter supply competition on the domestic market, are remarkably close to the English average.

 Huge losses are still being made at current prices so a further drop in price threatens long term production and supply sustainability – and abattoir owners should be aware of this,” added Mr Burrell.