THE increased consumer demand for mince and cheaper cuts of meat has led to a dramatic rise in cull cow prices for dairy farmers.
John Crowther milks 200 cows on his farm just north of Annan in the Scottish Borders, and sells cull cows at Borderway Mart in Carlisle.
He has regularly received £850 to £900 per animal – with some reaching £1,000 – over the past 12 months, compared to about £200 per head previously.
And three years ago there was simply no demand. Only a compensatory payment was available under the Government’s Over Thirty Month Scheme (OTMS).
“Now I tell the auctioneer what sort of price I am looking for when our cows come into the ring and I am pleased with what they have been making,” said Mr Crowther, who sells between 50 and 60 cull cows at the mart every year.
“I think it is important to have that open competition between buyers at an auction.
It helps drive the prices.”
David Pritchard, Borderway Mart operations director, said a tight supply and high demand in the beef trade was the overriding reason for this year’s higher prices.
“National cattle numbers overall seem to be down this year and the euro exchange rate has also led to greater competition between home market buyers and those buying cattle destined for export,”
he said.
“In July a typical average price was 95p per kg for cull cows, compared to 82p at the same time last year. Prices have now risen above pre-BSE prices in 1996.”
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