As sheep farmers protested yesterday at the Royal Welsh Show the beef industry was also heading up the agenda as producers were concerned at dwindling margin on suckler cows and fattening cattle.

Meat Promotion Wales said supermarkets and other retailers are stocking too much beef from outside the UK, having gone back on pledges to stock more British meat after the horsemeat scandal.

It says the amount received by farmers in Wales and around the UK has fallen meanwhile, with some paid up to £300 less per animal compared to last year.

The Welsh Retail Consortium, which represents retailers, has responded by saying that beef prices are related to wider market conditions, and are projected to rise later in the year.

In England, beef prices were starting to stabilise just like the liveweight lamb market.

The all prime average price was almost a penny up on the week at 325.2p/kg. This was the fourth consecutive week that the all prime average has fluctuated around the 325p/kg mark.

Reports suggest that two weeks ago (week ending 11 July) the market was more balanced than of late as demand was lifted by the continuing fine weather and tighter numbers prevailed.

AHDB/EBLEX estimates suggest that slaughterings were around 300 head back on the week.

While this levelling does give an indication of some stability in the trade at the present time, it remains to be seen if the downwards pressure has dissipated entirely.

Despite fewer cows forward, in the latest week prices edged down. At 229.5p/kg the average cow price was back almost 3p on the week. With good grass growth in some parts of the country there is still the opportunity for producers to take advantage of the better prices on offer for well finished cows, by adding weight and finish.

However, despite demand reportedly being still ahead of supplies, the European summer holiday period is imminent and sterling continues to strengthen. Both factors could have an impact on the market over the summer.

However, some producers remained optimistic despite the dwindling returns and decreasing suckler cow herd.

“Hopefully as supply drops off prices will increase as demand remains,” one farmer said.