In so far as the store trade itself is concerned, prices for forward stores are holding at levels close to last year. This is a reflection of the stability resulting from the revision to the arrangements for processors margins for inerventioin beef which I negotiated last August. There is obviously a wide variation in prices depending on quality with the good quality stores doing better.
I am concerned, however, that store heifers and weanlings are making somewhat lower prices than last year. In this context I was pleased to support the recent Commission proposal to increase the suckler cow premium this year by up to 20 ECU or £17.58. I am satisfied that this move will improve confidence and provide important income support for producers.