UK Butchers Grapple with Unprecedented Beef Price Hikes
The beef industry is facing a significant challenge as prices continue to soar, with deadweight prices fast approaching £7 per kg and liveweight prices nearing £3000 per head.
This situation is causing concern among butchers and processors, who fear that the current pricing is unsustainable and could lead to serious problems in the future.
Grant Moir, managing director of AK Stoddart, has expressed his worries about the disconnect between farm-gate prices and the actual market value. He warns that a correction by retailers could have a detrimental impact on the industry. Since Christmas, the price of finished cattle has seen substantial increases, with values jumping by 15p per deadweight kg per week, according to AHDB figures. There is growing speculation that prices may break the £7 per kg barrier by the end of March.
John Carlisle from Border Meats highlights the impending price hikes on supermarket shelves, which have not yet been reflected in retail prices. He notes that the previous margins in the beef trade have been wiped out, and the supply chain cannot continue to absorb the high farm-gate prices. Some butchers have already raised their prices, but this has affected footfall in their shops. Carlisle points out that the cost of purchasing cattle has increased by £600 per head since Christmas, and consumers may need to pay 50% more for beef, rather than the 10% rise currently seen on shelves.
The potential price increase could see typical sirloin steaks sold in supermarkets rise from £28 per kg to £42, and weekend deals like two steaks for £10 could jump to £15. This could lead consumers to seek alternative meal options.
Farmer and Forres butcher Jock Gibson adds that if farmers and processors need £7 per kg to maintain their operations, consumers will have to pay more than they currently do. However, he is uncertain whether consumers and the food service sector are willing to accept these higher prices. Gibson warns that the industry may resort to importing beef to fill the gap if domestic prices continue to rise.
Original story: The Northern Farmer