Deadweight british beef prices have soared to a record high as a result of strong domestic and international demand and a supply tightening, reports Hybu Cig Cymru (HCC), Meat Promotion Wales.
The £5/kilo threshold was breached for the first time on September 21, with the average England and Wales steer deadweight beef prices hitting 502.8p/kg in the week prior.
The landmark price followed a sequence of nine consecutive weeks of british beef prices edging up to current levels. They now sit almost 30p above the previous year’s beef prices and £1.03 above the five-year average.
Speaking of the record beef prices, HCC senior market intelligence and research and development officer, Elizabeth Swancott said:
“A tightening of supply, coupled with strong domestic and global demand, are the main reasons behind the new record high, both seem likely to continue to support beef prices towards and into 2025.”
At the start of 2024, beef prices were held around the 490p/kg mark for eleven weeks, before dipping below the previous year’s figures in April, only to recover in late June to eventually reach the new high in September.
Beef prices
UK beef prices are among the strongest in the world, according to the EU commission, which published figures on September 21, indicating that the EU average beef price stands at 499c, which is 104c lower that the current UK figure and over 2.5 times higher than that of Brazilian beef.
Defra reports UK prime cattle supply up 3% on the year, nevertheless beef supply within the global market is tight. Irish cattle slaughtering is predicted to fall by 2% in 2024 and beef production in Europe is set to decrease by 2.3% in 2024.
“Short-term cattle supply across the UK is expected to remain relatively stable.
“British Cattle Movement Service (BCMS) population data as of July 1, suggested the number of cattle aged 12-30 months may be down just 0.3% year-on-year but, looking ahead, the number of cattle in the 0–12-month age bracket is significantly lower, down by 4%, suggesting that future beef supply across GB could be constrained,” Swancott added.
Swancott also said the market seemed capable of withstanding some small fluctuations in supply as, in the past week, the GB figure of 10,230 head of steers coming forward was some 5% above the same period in 2023.
“Yet this increase in beef on the market is not currently putting pressure on retail demand. That is borne out by the latest figures from consumer experts Kantar that show an increase in GB beef sales for the twelve-week period ending August 4, with volume up 3% on the year supporting a 6% increase in total spend,” Swancott reported.
Exports are also strong, with recent data from HMRC for the first half of 2024 revealing an 11% increase in demand for British fresh and frozen beef exports.
