October 23, 2024

 

UK beef production and imports rise, exports show growth

UK beef production in September 2024 reached 76,600 tonnes, marking a 5% increase from August and a 7% rise (5,300 tonnes) compared to the same period last year, driven primarily by an increase in prime cattle slaughter, which rose by 5% to 173,900 head in September, UK Agriculture and Horticulture Development Board reported.

 

Prime carcase weights have remained relatively stable throughout the year, sitting 1% higher year-on-year for September, though showing a marginal 1% decline from August. Despite the increase in slaughter, UK's deadweight cattle prices continued to climb, indicating strong demand.

 

Cull cow slaughter also rose in September, up by 11% from August to 52,500 head, reflecting typical seasonal patterns. This figure is 7% higher than last year, potentially influenced by high cull cow prices and early housing of cattle due to wet weather.

 

Industry analysis suggests that competition for cattle and strong demand for beef are sustaining prices. Recent retail data covering a 12-week period ending September 1, 2024, showed that spending on beef increased by 4.1% year-on-year, with volumes rising by 1.6%. The average price paid for beef products increased by 2.4% across all categories.

 

Year-to-date (January to August) imports of fresh and frozen beef into the UK totalled 157,830 tonnes, an increase of 5% compared to the same period in 2023. Imports rose in August, reaching 19,086 tonnes, following a 6% drop in July.

 

The Republic of Ireland remains the dominant supplier of beef to the UK, holding a 76.3% market share, up from 72.7% in 2023. Beef imports from Ireland increased by 3% in August compared to July, reaching 14,300 tonnes. The year-to-date total for Irish beef imports stood at 120,500 tonnes, representing a 13% increase over the same period in 2023. The price differential between the UK and Irish beef markets widened in September, with the Irish R3 steer price sitting 97p/kg below the equivalent Great Britain measure as of 7 October. Ireland's competitive pricing and elevated production levels, coupled with strong UK demand, have likely driven the rise in imports.

 

Imports from Australia also increased, reaching 770 tonnes in August, representing 4% of the UK market compared to just 0.2% in August 2023. Imports from other key countries such as Poland, the Netherlands, and Germany showed declines, with the largest decrease observed in Germany (-56%).

 

UK beef exports have risen by 10% in 2024, totalling 72,900 tonnes for the year so far. In August, exports amounted to 8,300 tonnes, a 3% year-on-year increase, though this figure was 4% lower than in July. The European Union continues to be the primary destination for UK beef, accounting for 85% of exports in 2024. However, challenges such as strong UK cattle prices relative to continental prices and the appreciation of sterling against the Euro may have affected export volumes in August. Nevertheless, a projected decline in EU beef production in 2024 and 2025 may create additional export opportunities for UK producers.

 

Non-EU markets have played a significant role in boosting UK beef exports this year. Hong Kong remains the largest non-EU destination, with 4,100 tonnes exported so far in 2024, an increase of 67% compared to the same period in 2023. Exports to Canada, the Philippines, and other smaller markets have also risen, contributing to increased value for the UK's domestic beef market.

 

-      UK Agriculture and Horticulture Development Board