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

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

Hybu Cig Cymru – Meat Promotion Wales (HCC), the red meat levy board, is actively engaging with levy-payers to inform its crucial new strategic document, “Vision 2030.”

This comprehensive plan will set the organization’s priorities and guide its support for the Welsh red meat industry over the next four years.

To gather vital industry perspectives, HCC has launched an online survey, accessible to all levy-payers. The survey, which went live on Monday, May 20, will remain open until Friday, July 25, 2025.

José Peralta, Chief Executive of HCC, underscored the significance of this consultation. “HCC’s strategic purpose, underpinned by the Red Meat Industry (Wales) Measure 2010, comes from its vision document. As we look towards the culmination of the current vision, we must also plan for the next,” he stated. “I have met with a number of key stakeholder groups in recent weeks to start this important discussion. The survey is the next step to gather industry views on the industry’s challenges and priorities, and what HCC can do to support it.”

The online survey is a key component of a wider engagement initiative planned throughout 2025. This extensive outreach will also include direct meetings and HCC’s attendance at various livestock markets and industry events across Wales. The first of these direct engagements took place at NSA Welsh Sheep at Tregoyd Farm, Brecon, on Wednesday, May 21, 2025, where HCC representatives were available to discuss industry concerns and opportunities.

HCC urges all levy-payers to participate actively in this process. “Our survey will form part of a wider engagement plan delivered throughout 2025,” Peralta explained. “We would ask levy payers to come and talk to us at forthcoming events, or fill the online survey to make your views heard. It is vital that stakeholders from across Wales contribute to the process so that HCC is fully informed of the complex challenges within our industry.”

By providing your insights, you can directly influence the strategic direction of HCC and help shape a resilient and prosperous future for the Welsh red meat sector.

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

Atypical BSE Case Confirmed in Essex, No Risk to Public Health or Food Safety

A single case of atypical Bovine Spongiform Encephalopathy (BSE) has been confirmed on a farm in Essex. Authorities swiftly moved to reassure the public that there is no risk to human health or food safety from this isolated incident.

The animal, which showed some clinical signs of BSE, was humanely culled on the farm and tested.  As it was fallen stock, the animal was not destined to enter the food chain.

Chief Veterinary Officer Christine Middlemiss clarified, “Atypical BSE is distinct from classical BSE and is a spontaneously and sporadically occurring, non-contagious disease which is believed to occur at a very low level in all cattle populations. This is proof that our surveillance system for detecting and containing this type of disease is working.”

Dr. James Cooper, Deputy Director of Food Policy at the Food Standards Agency, echoed this reassurance: “There is no food safety risk. There are strict controls in place to protect consumers from the risk of BSE, including controls on animal feed, and removal of the parts of cattle most likely to carry BSE infectivity.” He added that consumers can be confident in these protective measures, with FSA Official Veterinarians and Meat Hygiene Inspectors continuing to ensure consumer safety in all abattoirs.

BSE is a notifiable animal disease. Suspected cases must be reported by calling the Defra Helpline on 03000 200 301 (England), 0300 303 8268 (Wales), or your local Field Services Office in Scotland.

Failure to report is an offence.

Original source: Gov.uk

Pembrokeshire’s Only “State-of-the-Art” Abattoir Gets Expansion Go-Ahead

Plans to expand facilities at Euro Farm Wales, Pembrokeshire’s sole “state-of-the-art” abattoir, have been given the green light by Pembrokeshire County Council.

The application sought permission for an extension to the yard, along with the construction of a storage building and water tanks, at the existing abattoir located on the Withybush Trading Estate in Haverfordwest.

The approved scheme is anticipated to yield positive economic benefits by enabling the expansion of the existing business and securing local employment. Furthermore, positive environmental impacts are expected through the implementation of a sustainable drainage system for surface water and the provision of landscaping on the eastern boundary, as well as bird boxes on the proposed storage building.

The application was granted conditional approval, paving the way for the expansion of this key agricultural infrastructure in Pembrokeshire.

Original source: Yahoo News

Brazil Pins Hopes on Regional Approach to Ease Bird Flu Trade Bans

Brazil’s poultry industry is facing a challenging period following the country’s first confirmed bird flu outbreak on a commercial farm. However, Brazilian officials are optimistic that major importers, particularly China, will adopt a regional approach to trade bans, limiting restrictions to the affected southern state rather than implementing nationwide suspensions.

Luis Rua, international secretary at Brazil’s Agriculture Ministry, expressed confidence that “since global demand is very strong, it’s likely that there will soon be some flexibility.” He added, “We are doing our part to quickly share information so things aren’t suspended for long.”

The hope is that China, Brazil’s largest chicken export market, will follow the lead of Japan, Saudi Arabia, and the United Arab Emirates, which have indicated a willingness to restrict bans to chicken from the state of Rio Grande do Sul, where the outbreak occurred.

A nationwide ban would be particularly painful for both Brazil, which accounts for over 35% of global chicken exports, and major importers like China, which sources over half of its chicken imports from Brazil. Brazilian Agriculture Minister Carlos Favaro highlighted this reliance, noting that the United States is the other primary supplier to China.

Interestingly, China already has significant restrictions on US poultry due to a widespread bird flu outbreak in the United States and ongoing trade tensions. Currently, China blocks poultry imports from more than 40 US states.

Brazilian officials are banking on their ability to contain the outbreak within Rio Grande do Sul and the strong global demand for chicken to persuade key importers to adopt a targeted, regional approach to any trade restrictions.

Original source: Reuters