Farm-gate prime cattle prices have shown some modest increase over the past couple of weeks, according to Quality Meat Scotland (QMS) analysis, and currently stand 10-11 per cent higher than this time last year.
The prices paid to producers have been supported by a lower availability of prime cattle reaching the Scottish market, said Stuart Ashworth, QMS Head of Economics.
"Throughput in both auction markets and price-reporting abattoirs over the past couple of weeks has been running at lower levels than last year. Carcase weights are also falling so the volume of beef produced is lower than last year," said Mr Ashworth.
The recent price movement will also have an element of seasonality in it, he added. Prime stock supplies have historically tightened during April and into May before hitting a seasonal low in July and August.
"Last year farm-gate prices started to rise in the first week of May and two years ago it was the beginning of June, so the 2017 movement is slightly sooner than last year," observed Mr Ashworth.
In contrast, prime stock prices in England and Wales have lacked direction in recent weeks with the market there being slightly better supplied than a year ago. As a consequence, the premium found in the Scottish market over that in England has widened to its current position of 10p/kg for an R4L steer, compared to 3-4p in February.
"Across Europe, in the main beef-producing countries, farm-gate prices have risen at a more modest rate of less than 1 per cent over the past two weeks, suggesting the Sterling exchange rate may be supporting UK price," said Mr Ashworth.
When converted to Euros, the UK price increase of 0.5 per cent mirrors the general state of the EU market. UK farm-gate prime beef prices remain some of the highest in Europe with only Sweden, Italy and Greece having higher prime beef prices.
Market round-up
Messrs Craig Wilson Ltd sold 270 store heifers at Ayr on Thursday to a top of £1220 per head and 263.3p per kg to average £847.76 and 228.6p (+3.8p on the week), while 363 store, beef-bred bullocks peaked at £1305 and 286.8p to level at 232.1p (+7.6p). Fifty-four store, B&W bullocks sold to £855 and 182.5p to average £686.25 and 152.7p (-1p).
C&D Auction Marts Ltd sold 3124 prime hoggs in Longtown on Thursday to a top of £127 and 318p to average 178.8p (+5.3p).
There were also 2219 cast sheep forward when heavy ewes sold to £154 for Texels and averaged £85 (+£4.97), while light ewes peaked at £82 for Blackfaces and levelled at £48 (+£1.71). Rams sold to £175 for a Texel and averaged £84.
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