Abattoirs across the region were being accused of using the ending of the Over Thirty Month Scheme as an excuse to pull down prime cattle prices - even though supplies of finished stock on farms are tight and chill room beef stocks are low.

As South West Farmer went to press the National Beef Association said the long predicted move was "inevitable" and recommended it should be dismissed by finishers as a trading ploy rather than a genuine reaction to market forces.

"Many slaughterers are looking for a chance to knock back prices and one of their habitual ploys is to create the impression of a falling market because this can persuade finishers to rush cattle forward before they are hit with further income losses," said NBA chairman, Duff Burrell.

"However finishers should demonstrate their refusal not to be panicked into selling cattle at the wrong time by keeping as much stock as they can off the market until the processors' bluff is called. It may take a week or two for this message to sink in but we know slaughterers are looking for prime cattle and if they meet enough supply resistance they will have to offer more money to bring them out."

Many slaughterers could well protest that the appearance of more cows, especially dairy cows, on the commercial market from the end of January will put pressure on prime cattle forequarter values.

The NBU says the EU beef market is short supplied and prime cattle prices in the Republic of Ireland, which is the source of most forequarter supply competition on the domestic market, are close to the English average at 191-192p per dwkg.

"Farmers there, and in Northern Ireland where averages are unusually high at 191p, are digging in and refusing to take price drops without a fight and if this determination not to accept reductions can be repeated in England, Scotland and Wales then the abattoir campaign, which began with a 5p-6p drop in live auction averages can be quickly snuffed out," said Mr Burrell.

Martin Coleman, regional agricultural manager for NatWest in the South West said the removal of the Over Thirty Months Scheme would not take place in one go, as some in the industry feared. The introduction of the Older Cattle Disposal Scheme and the staged reduction for the price of cattle entered into the scheme gave UK producers an opportunity to develop both a home market for this older beef and an export market for prime beef - once the export market reopened.