Paid Cattle Prices Now More Than Quotes Offered

UK - In the last three months, the prices that eventually had to be paid by plants to secure a supply of cattle was in the region of two pence more than they were quoting, reports a Livestock Meat Commision bulletin.
calendar icon 10 November 2008
clock icon 1 minute read

This difference between what was paid and what was initially offered is greater than it has been at anytime in the last two years and probably reflects reluctance on the part of producers to sell too cheaply.

An analysis of average factory quotes for U3 grade prime cattle and average prices paid to producers so far this year has indicated that an average of 1p/kg has been paid over the quoted price. For the same period in 2007 there was virtually no difference between quotes and prices paid (0.01p/kg).

The table below sets out the quotes and paid prices from January 2007 to 31 October 2008. In this period there have only been four months when the average paid price has been less that the average quote: March and April in 2007 and March and July in 2008. The average quoted price and the actual price paid have been equal or have had a differential of less than 1p/kg for 10 separate months. There have been eight months when the average paid price has exceeded the average quoted price by more than 1p/kg. These were January 2007 (1.5p/kg), December 2007 (1.3p/kg), January 2008 (1.8p/kg), May 2008 (1.2p/kg), June 2008 (1.2p/kg), August 2008 (2.2p/kg), September 2008 (1.8p/kg) and October 2008 (2.2p/kg).

 

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