October 4, 2024

 

UK beef prices reach record high amid strong demand and tight supply

Hybu Cig Cymru - Meat Promotion Wales (HCC), UK, has reported that beef deadweight prices in the UK have surged to a new record high, driven by robust domestic and international demand, alongside a constrained supply, Meat Management reported.

 

According to HCC, the GBP 5 (US$6.58) per kg threshold has been surpassed for the first time, with the England & Wales steer deadweight average reaching GBP 502.8p (US$6.68) per kg. This increase follows nine consecutive weeks of rising prices, now sitting almost GBP 0.30 (US$0.39) above prices from the same period last year and GBP 1.03 (US$1.35) above the five-year average.

 

Elizabeth Swancott, HCC's senior market intelligence and research and development officer, explained that a tightening of supply, combined with strong domestic and global demand, are key factors behind this new record. She added that these conditions are likely to continue supporting high beef prices into 2025.

 

At the beginning of 2024, beef prices held steady around the GBP 490p (US$5.38) per kg mark for 11 weeks. However, a dip in April brought prices below the previous year's levels before a recovery in late June led to the new record.

 

The European Commission's latest data indicates that UK beef prices are among the strongest globally. As of September 19, 2024, the average beef price across the EU stood at US$4.99, which is US$1.04 lower than current UK figures and more than 2.5 times higher than Brazilian beef prices.

 

Swancott also noted that while UK prime cattle supply is up 3% year-on-year, the global beef market remains tight. Irish cattle slaughtering is expected to decline by 2% in 2024, and European beef production is forecast to drop by 2.3% in the same year.

 

In the UK, short-term cattle supply is projected to remain relatively stable. British Cattle Movement Service (BCMS) data from July 1st shows that the number of cattle aged 12–30 months has only slightly decreased by 0.3% year-on-year. However, the number of cattle in the 0–12-month age bracket is down by 4%, suggesting potential constraints on future beef supply in Great Britain.

 

Despite this, the market appears resilient, with the number of steers coming to market in the UK, totalling 10,230, up 5% compared to the same period in 2023.

 

Swancott added that this increase in available beef has not negatively affected retail demand. According to the latest data from Kantar, beef sales in the UK for the 12-week period ending August 4, 2024, rose by 3% year-on-year, contributing to a 6% increase in total consumer spending.

 

In addition to strong domestic sales, exports have also performed well. Recently released HMRC data shows an 11% rise in the volume of fresh and frozen beef exported from the UK during the first half of 2024.

 

-      Meat Management