August 10, 2006

UK beef industry relieved as UK beef retail prices increase

Recent rises in retail beef prices in the UK is good news as it gives much needed reprieve to farmers suffering losses after the recent hot weather, the National Beef Association said Wednesday Aug 9.

A survey by the NBA indicates that there has been a rise of 14.2 percent in the average price of supermarket rump steak in England in the four weeks to July.

These much-needed increases indicate that the market have at last realised they must play their part in helping the domestic beef industry flourish, Robert Forster, NBA chief executive, said.  

Supermarkets must accept, Forster said, that the British beef industry is at risk unless shoppers pay more. The additional margins should be passed back through the supply chain so both processors and farmers can feel financially secure, Forster added.

He said he was delighted that there was progress made, even though current prices are still below what is necessary to make a profit.

At present prices, the reality is that supermarket beef is cheaper in real terms than it has been for 20 years, according to figures from the government's Office for National Statistics, Forster added.

As prices rose in the supermarkets, prices paid to farmers have remained stable at about 225p/kg. The NBA estimates it would need 250p/kg to make a profit.

Over the past ten years, farmers' returns have fallen in absolute terms.

Even at the start of this year the UK average was 190p/kg and it was only in April that the price broke through the 200p barrier.