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Beef prices hit record highs in October, driven by strong demand both domestically and in Export markets. Retail spending on British beef reached £5bn in the 12 months to September, up by 5.3% year-on-year. Stuart Vile, ruminant manager at Meadow Quality, noted that consumers are actively purchasing beef for Christmas orders. UK beef exports have increased by 10% this year, with the EU accounting for the majority of trade. Tight cattle supplies in Europe have supported prices, with the EU commission forecasting a decrease in beef production in the coming years.

Levy boards have been promoting British red meat at Sial Paris, the world’s largest food trade fair. This event provides exporters with a platform to showcase British red meat and connect with global buyers. However, high domestic beef prices and a strong sterling have led to increased competition from imports, particularly from Ireland and Australia. A 12% tariff on Australian beef imports by China may shift focus to other regions, potentially impacting prices.

AHDB’s Farmbench data revealed varying profit margins for beef finishers, with the top 25% making a profit while the majority did not. Finished cattle prices have seen significant increases, which should improve profit margins. Neil Shand of the National Beef Association has called for a £100 headage payment in England to incentivize beef production and prevent further contraction in the beef herd.

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