UK Food Inflation Hits Annual High as Beef Prices Surge

UK food inflation has reached its highest annual rate since May 2024, with rising costs for beef and fresh produce identified as key drivers, according to recent industry data. A prominent steakhouse chain co-founder has highlighted a significant increase in the price of beef, impacting the broader food sector.

Figures released by the British Retail Consortium (BRC), which represents major supermarkets and retailers, indicate that food prices climbed by 2.8% in the year to May. This marks the highest annual rate since May 2024, when food inflation stood at 3.2%.

Industry experts in agriculture point to a combination of strong consumer demand and constrained supply, partly attributed to a lack of government support for production, as primary factors behind the particular surge in beef prices.

Tomas Maunier, co-founder of the Brazilian-inspired steakhouse chain Fazenda, operating eight restaurants across the UK, described the current climate for the meat industry as “tough times.” He revealed that while his firm has absorbed the majority of increased operational costs, approximately 2% has been passed on to customers.

“Beef, specifically, has seen its cost rise by around 20% over the last 12 months, with a substantial portion of that increase occurring in the past six,” Mr. Maunier stated. He also noted that escalating production expenses and the increase in the national minimum wage are contributing to the overall cost burden, which ultimately affects consumers.

Nick Allen, Chief Executive of the British Meat Processors Association (BMPA), commented that intense competition among supermarkets had previously helped to suppress beef prices. He suggested it was inevitable that these rising farm-gate costs would eventually reach shoppers. “It’s no surprise. The farm price for beef has been consistently climbing to record levels,” Mr. Allen explained, cautioning that the industry faces a “real struggle” to meet demand. He further argued that government schemes have, in his view, prioritised environmental initiatives over direct production support.

Helen Dickinson, Chief Executive of the BRC, acknowledged that consumers of red meat “may have noticed their steak got a little more expensive” in recent times.

From the farming perspective, Jilly Greed, a fourth-generation arable farmer and suckler beef producer in Devon, underscored the fundamental economics at play. “It is entirely the maths – it’s about supply and demand,” she told the BBC. Ms. Greed elaborated that a “5% shortfall in cattle on the land,” coupled with a “1% increase in consumer demand,” has combined to drive the current price increases.

The ripple effect of these higher base product costs is impacting the entire supply chain. As Mr. Allen observed, “The base product is the highest it’s ever been, and sooner or later that has to filter through to the consumer.” The Agriculture and Horticulture Development Board (AHDB), funded by farmers and growers, has also noted that UK cattle prices have been rising at “unprecedented levels” since early 2025. While some of this rise is being passed on to shoppers, AHDB’s latest beef market update indicates that not all of the increased cost is currently being transferred.

Original source: BBC News

UK Turkey Market Outlook 2025. A Steady Market with Changing Priorities

As we move through 2025, the UK turkey market remains a key area of interest for wholesalers, processors, and foodservice buyers. While overall demand remains stable, the way turkey is being sourced, sold, and served is evolving.

Whole birds are still in demand for the festive season, but year-round sales are increasingly driven by added-value cuts: turkey breasts, crowns, marinated portions, and convenience-ready formats. Retailers and caterers alike are adapting to changing consumer habits, particularly among younger demographics looking for quicker, easier meals without compromising on quality.

Production Pressures Continue

UK producers are feeling the squeeze from:

• Higher feed and energy costs

• Labour shortages

• Tight margins on rearing and processing

Avian flu remains a concern for flock management, and there’s growing caution around flock expansion. Many producers are focusing on efficiency and forward contracts to manage risk.

Imports Remain Vital – But Complex

The UK continues to import a significant volume of turkey products, particularly from the EU. Polish and German producers offer competitive prices, especially for cooked and processed meat used in food manufacturing and foodservice.

However, post-Brexit checks and currency volatility have added complexity to import schedules, encouraging some buyers to explore more UK-based supply options for stability and traceability.

Sustainability in Focus

Across retail, foodservice, and manufacturing, there’s a growing push toward:

• British sourcing

• Higher welfare standards

• Lower environmental impact

Organic and free-range turkey is seeing steady demand growth, particularly among premium buyers. That said, price sensitivity remains a key factor for most volume purchases.

As the hospitality sector continues its post-COVID rebound, turkey remains a carvery and Christmas menu staple. There’s strong interest in boneless joints, pre-sliced products, and ready-to-serve solutions that offer consistency and ease in high-volume kitchens.

Looking Ahead

The UK turkey sector in 2025 is best described as stable but watchful. Buyers can expect:

• Consistent demand in retail and foodservice

• Gradual growth in value-added and sustainable formats

• Ongoing price pressures and tighter supply planning

• Import reliance continuing, but under increased scrutiny

At Meatex, we’re actively sourcing a broad range of turkey products to meet the evolving needs of the trade – from festive whole birds to everyday processed cuts. Whether you’re looking to buy British or import at scale, our network can help you stay ahead of the curve.

📞 Get in touch with our team to discuss current availability and forward-order options.

South East’s Last Small Abattoirs Face Uncertain Future Amidst Rising Costs and Workforce Shortages

The owner of one of the South East’s few remaining small abattoirs has voiced significant apprehension regarding the long-term viability of the sector, citing increasing financial pressures and a challenging workforce landscape.

Luke Smith, who operates Down Land Traditional Meats in Henfield, West Sussex, has warned that without enhanced government financial assistance, his slaughterhouse faces an uphill battle for survival. Such a closure would have a direct impact on local farmers who supply independent butchers and farm shops rather than larger supermarket chains.

A key concern is the escalating cost of animal waste disposal, which has surged to an alarming £5,000 per week. Compounding this financial strain is an ageing workforce; Mr. Smith revealed the average age of a slaughterman is currently 63, with limited interest from younger generations in entering the profession.

“The abattoir itself is currently operating at a loss,” Mr. Smith explained, adding that his wholesale butchery operation is presently sustaining the wider business. “We are in urgent need of support and funding to continue.”

The challenging environment for small abattoirs is reflected in broader industry trends. The number of abattoirs across the UK has plummeted dramatically from approximately 2,500 in the 1970s to just 203 by 2023. Specifically, smaller facilities in England saw their numbers decline from 64 in 2019 to 49 by 2023, with five more closures reported in 2024 alone.

Local farmer Edward Perrett, from Ditchling, West Sussex, who relies on Down Land Traditional Meats for his farm shop’s supply, underscored the importance of nearby processing facilities. “Having a short journey to an abattoir is beneficial for animal welfare and helps manage costs,” Mr. Perrett stated, expressing concern that the abattoir’s closure would significantly complicate his operations.

The plight of small abattoirs has garnered political attention. Andrew Griffith, Conservative MP for Arundel and South Downs, voiced his backing for Mr. Smith, describing the issue as a “real crisis” in a “vital, sometimes neglected part of our food supply chain.” He suggested that while previous government grants were helpful, more substantial support and a reduction in bureaucratic hurdles are required.

Responding to the concerns, a spokesperson for the Department for Environment, Food and Rural Affairs (DEFRA) affirmed the government’s commitment to the meat processing sector. They acknowledged the “vital contribution” of small abattoirs to maintaining a resilient food supply chain and their role in offering a competitive market route for producers of rare and native breeds. DEFRA highlighted an ongoing £5 billion investment in farming, touted as the largest ever budget for sustainable food production, alongside reforms aimed at boosting farmers’ profits and unlocking rural growth.

Original source: BBC News

Weekly Australian Cattle and Sheep Markets: Supply Shifts Impact Prices

The latest Meat & Livestock Australia (MLA) weekly market wrap reveals a dynamic period for Australian cattle and sheep, with reduced supply notably influencing prices across various indicators. The week ending May 16, 2025, saw significant movements in yardings, prices, and slaughter rates.

Cattle Market Highlights: The cattle market experienced an uplift across all indicators, primarily driven by sustained buyer demand against a backdrop of reduced supply. National yardings eased considerably by 25,000 head, settling at 55,000 head for the week—nearly a 50% reduction from two weeks prior. While most states saw reductions, Tasmania was an exception.

Cow prices observed a lift this week, with the indicator price increasing by 12¢ to 256¢/kg liveweight (lwt), despite a monthly reduction. Victoria led the cow market, averaging 263¢/kg lwt. Demand for steers remained robust, with heavy steers climbing 19¢ to 314¢/kg lwt, feeders gaining 11¢ to 378¢/kg lwt, and restockers up 14¢ to 391¢/kg lwt.

Sheep Market Highlights: The lamb market bounced back, fuelled by strong demand and reduced supply. National lamb yardings eased 13% to 191,000 head after three weeks of high offerings, while sheep yardings decreased 9% to 105,000 head, with all states showing combined reductions.

Export lambs were in high demand, propelling the National Heavy Lamb Indicator up 44¢ from the previous week to 902¢/kg carcase weight (cwt), with some reaching the 1,000¢ mark. New South Wales largely drove this national price. Trade lambs also saw an increase of 37¢ to 876¢/kg cwt. Mutton prices continued their fluctuating trend, rising 7¢ to 570¢/kg cwt, primarily due to processor demand.

Slaughter Figures (Week ending May 16, 2025): National cattle slaughter increased by 6% to 152,396 head, marking the largest weekly throughput since December 2019, reflecting strong supply and increased processor demand in a favourable global market.

National lamb slaughter eased by 3% to 506,598 head, though remaining above 500,000 for a third consecutive week. Mutton slaughter notably lifted by 11% to 198,854 head, as a surge in mutton supply reached processors.

Note: Flooding in the Upper Hunter and Mid North Coast regions impacted cattle and sheep supply through saleyards during this period.

Original source: MLA 

Weekly Market Wrap: Cattle Prices Soften, Lamb Falls Below Five-Year Average as Supplies Increase

GB Prime Cattle Prices See Second Consecutive Decline; Lamb Continues Downward Trend

Wednesday, May 21, 2025 – The latest figures for the week ending May 17 show a continued softening in GB prime cattle prices, while lamb prices have notably dipped below their five-year average for the first time this year. Increased slaughter numbers across both sectors are a key factor in these market shifts.

Cattle Market Highlights:

• Prime Cattle: The GB all-prime average deadweight price for prime cattle dropped by 10p/kg week-on-week, settling at 687p/kg. This marks the second consecutive week of decline. All prime categories experienced a fall, with steers down 10p/kg, heifers 9p/kg lower, and young bulls seeing a steeper reduction of nearly 14p/kg. Despite these recent falls, prices remain at historically high levels, with the all-prime average still over £2/kg higher than this time last year.
• Slaughter Numbers Up: Estimated prime cattle slaughter surged significantly in the week ending May 17, reaching 37,400 head. This represents the highest weekly kill of the year to date and is 10% higher than the same week in 2024, as supply catches up after the recent bank holiday.
• Cow Prices Stable: The GB overall deadweight cow price remained flat on the week at 541p/kg. Estimated cow slaughter increased to 8,000 head. Year-to-date, cow slaughter is 5% below the same period last year, a tightness in supply that has contributed to the recent strength in cow prices, influenced by strong dairy production and a long-term contraction in the suckler breeding herd.

Sheep Market Highlights:

• Lamb Prices Decline: The GB deadweight old season lamb (OSL) price continued its downward trajectory, falling by 9p/kg from the previous week to 665p/kg. This is the first instance in 2025 that the lamb price has dropped below the five-year average for this week, though it remains significantly below year-ago levels.
• Strong Supplies: Estimated lamb kill figures remained robust, totaling 214,300 head in the latest week. While only a slight week-on-week increase, this is 14% higher than the same week last year, bringing the year-to-date total almost 6% higher than the corresponding period in 2024.
• Trade Data: Q1 2025 trade data (January-March) shows a 1% year-on-year increase in exports of fresh and frozen sheep meat, reaching 20,700 tonnes. This indicates sustained demand from continental Europe, the primary market. Price indicators at France’s Rungis market have remained relatively steady. Simultaneously, sheep meat imports have risen by 5% year-on-year for Q1, largely driven by increased volumes from Australia and New Zealand, alongside smaller increases from suppliers like Ireland and Iceland.

Original Source: AHDB

HCC Launches Vision 2030 Industry Survey

Hybu Cig Cymru – Meat Promotion Wales (HCC) has opened an HCC Vision 2030 industry survey to gather levy-payer views for its next four-year strategy. The online survey went live on 20 May and is scheduled to remain open until 25 July 2025.

HCC says the feedback will shape priorities for supporting the Welsh red meat sector through to 2030. Chief executive José Peralta said the consultation follows recent meetings with stakeholder groups and will help identify the industry’s key challenges, opportunities and where HCC can add most value.

The new “Vision 2030” will succeed the current plan at the end of this Senedd term and guide activity across domestic promotion, export development, market intelligence and on-farm sustainability support.

Industry participants and other levy-payers are invited to complete the survey via HCC’s website.

Click here to access the HCC Vision 2030 survey: https://hcc.wales/en/news/hcc-to-consult-on-future-strategic-direction

Original source: HYBU CIG CYMRU

China and Other Nations Reject In-Transit Brazilian Chicken Cargoes Over Bird Flu

Brazil’s poultry industry is facing immediate logistical and financial challenges as countries, including China, are rejecting chicken consignments already in transit following the confirmation of Brazil’s first bird flu outbreak on a commercial farm.

Ricardo Santin, president of the Brazilian meat lobby ABPA, stated on Tuesday that the rejection of these cargoes, representing 39% of the global chicken trade, will vary from 14 to 28 days based on the shipment date and the discretion of destination countries’ veterinary services. This situation places major meat processors like BRF SA and JBS SA in a “tight spot,” dealing with increased logistics costs and significant uncertainty.

The outbreak in Montenegro, Rio Grande do Sul state, triggered health protocols leading to rejections from countries such as China, Mexico, and Chile, among others. Santin noted that easing these restrictions for in-transit cargo, particularly from regions distant from the outbreak zone, is a possibility but will necessitate negotiations.

Santin highlighted the difficulty in calculating precise losses due to the varied scope and duration of trade bans, which depend on individual health protocols and ongoing talks with importing nations. He recalled that China had imposed a nationwide ban on Brazilian chicken for approximately three weeks last year following a Newcastle disease case, also in Rio Grande do Sul, before narrowing it to a state-wide restriction.

Original source: Reuters 

Emily Norton Appointed New Chair of AHDB

STONELEIGH, UK – May 21, 2025 The Agriculture and Horticulture Development Board (AHDB) has announced the appointment of Emily Norton as its new Chair. Ms. Norton takes over the leadership role from Nicholas Saphir, who has completed his tenure.

The appointment marks a significant transition for AHDB, the statutory levy board for the red meat, dairy, cereals and oilseeds, and horticulture sectors in Great Britain. Emily Norton brings a wealth of experience to the position, poised to guide the organisation through its strategic objectives and continued support for the farming and growing industries.

Further details regarding Ms. Norton’s background, vision for AHDB, and the transition process are expected to be elaborated upon by the organisation. Her leadership will be key in addressing the challenges and opportunities facing British agriculture, from sustainability and innovation to market development and producer support.

Original source: AHDB 

The newly announced UK-EU reset deal is being hailed as a transformative moment for Britain’s food industry, with sweeping changes aimed at easing trade frictions and lowering costs for consumers and businesses alike.

Prime Minister Keir Starmer described the agreement as a “win-win” that restores Britain’s position on the global stage. Among the most impactful provisions are those targeting the food and drink sector, which has faced years of disruption since Brexit.

Key Food Trade Reforms

• Simplified Border Checks: A new sanitary and phytosanitary (SPS) agreement will remove many routine checks on animal and plant products. This is expected to reduce delays, cut costs, and improve the freshness and availability of goods on both sides of the Channel.
• End of Meat Export Bans: The EU’s longstanding ban on UK exports of sausages, mince, and some other chilled meats—imposed in 2021—will be lifted. This opens the door for British producers to re-enter a vital European market.
• This change is part of a broader veterinary agreement that also reduces red tape and health certification requirements for British food exports. In exchange, the UK has agreed to align with EU sanitary and phytosanitary (SPS) rules and grant long-term access to UK fishing waters.
• The lifting of the ban is expected to significantly benefit British meat producers and exporters, reopening a vital European market that had been largely inaccessible for over four years.
• Lower Prices and Greater Choice: With fewer bureaucratic hurdles and faster transit times, retailers anticipate a broader range of products and more competitive pricing for consumers.
• Industry Reaction: Karen Betts, Chief Executive of the Food and Drink Federation, welcomed the deal, noting that Europe remains the UK’s largest customer and supplier. “Trade in both directions has become complex and challenging,” she said. “A high-quality agreement will have clear benefits for consumers and businesses.”

Strategic Importance

The food and drink sector has been one of the hardest hit by post-Brexit trade barriers. Exports to the EU have fallen by a third since 2019, and importers have struggled with rising costs and logistical headaches. The new deal is seen as a vital step toward reversing that trend and restoring confidence in cross-border supply chains.

Retailers and manufacturers are now urging the government to work closely with industry to implement the changes smoothly and ensure the UK has a voice in future EU regulatory decisions that could affect British competitiveness.

EU Bans All Brazilian Poultry and Meat Imports Over Bird Flu Outbreak
The European Union has halted all imports of poultry and meat products from Brazil following the confirmation of Brazil’s first bird flu outbreak on a commercial farm. The European Commission stated on Monday that EU import conditions require the exporting country to be free of Highly Pathogenic Avian Influenza (HPAI).

This move by the EU follows Brazil’s announcement on Friday of the H5N1 outbreak, which also triggered a country-wide trade ban from top buyer China and state-wide restrictions from other major consumers like Japan. Brazilian Agriculture Minister Carlos Favaro had previously indicated that, under existing protocols, the EU, China, and South Korea would impose 60-day bans.

A European Commission spokesperson confirmed via email that Brazilian authorities can no longer sign the necessary animal health certificates for exports to the EU, thus preventing any poultry or meat products from any part of Brazil from entering the bloc.

Original source: Reuters