Tight Beef Supply Sees Deadweight Prices Surging
Soaring Beef Prices Expected to Breach £7/kg as Supplies Tighten
Cattle deadweight prices in the UK are experiencing a dramatic surge, with a near 40% increase recorded in just nine months, according to Hybu Cig Cymru (HCC), Wales’s red meat levy body. The organisation forecasts that this upward trend will imminently see beef prices break the £7 per kilogram threshold, with weekly increases becoming the norm.
HCC attributes this significant price hike to tight beef supplies both domestically and across international markets. The situation is not isolated to the UK, with supply constraints being felt throughout Europe.
Glesni Phillips, HCC’s intelligence, analysis and business insight executive, highlighted the scale of the price surge. “Prime cattle deadweight prices in England and Wales have risen dramatically since late 2024 and are now £2/kg higher than the same period last year,” she stated.
Historical records have already been broken, with the average steer deadweight price surpassing £5/kg in September 2024 and reaching £6/kg by February 2025. Ms. Phillips predicts that “given the current trends, could hit £7/kg by late spring.”
The tightening supply across the European Union is also playing a role in the price dynamics. “EU beef prices have recently climbed more rapidly than here, narrowing the typical price gap to around 94.8p/kg for steers as of March, which could enhance UK export competitiveness,” Ms. Phillips explained. However, she cautioned that “although rising prices in Ireland will likely mean higher import prices domestically.”
The combination of reduced domestic availability and increasing prices in key European markets suggests that the strong beef prices are likely to persist in the near future. This situation presents both opportunities and challenges for the UK beef industry, potentially boosting export prospects while also increasing costs for domestic consumers and businesses relying on beef supplies.
Original story: Farmers Weekly
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