Higher retail prices impact meat sales
With the cost of living crisis hitting households across the UK, Cedric Porter takes a look at the impact on consumer spending.
Consumers are cutting back on meat consumption as they change purchasing habits to cope with the cost of living.
Food price inflation has been rising at its fastest rate for 40 years. In July the Food and Catering Retail Price Index, as measured by the Office for National Statistics, was 11.9 per cent higher than the year before.
As recently as May 2021 the index was in negative territory. The rising cost of food not only reflects higher crop and livestock prices, but higher energy, packaging and transport costs.
There is evidence that higher retail food prices are leading to fewer sales. Beef sales in the 12 weeks to August 7 were down 8.3 per cent, but prices rose by 8.8 per cent, according to data from Kantar for AHDB.
Lamb volumes were down 17.7 per cent, while the price was up 10 per cent.
Pork demand was 5.1 per cent lower, with the price up 8.3 per cent. The latest dairy figures only cover the year to 12 June, but they still show a reduction in volumes and an increase in price.
Steven Evans, senior consumer insight manager at AHDB, said: “The figures still reflect the disruption to the market caused by Covid, but there is also an impact on demand in response to higher prices.”
by Cedric Porter / Farmers Guardian
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