UK beef production higher, prices remain strong
Beef prices in the UK are still strong, despite an increase in slaughter figures, announced AHDB and QMS. Beef production in the UK was 2.7% higher in April 2021 compared to year-earlier levels, according to Defra figures. In April, 75,800 tonnes of beef and veal was produced, 2,000 tonnes more than the same month last year. This increase in production was due to more cattle slaughterings during the month. Prime cattle slaughter for the month totalled 171,000 head, 0.7% higher year-on-year. Steers, heifers and young bulls all had higher slaughterings than year-earlier levels.
Adult cattle slaughter totalled 48,500 head in April, an increase of 6.3% on year-earlier levels. This notable year-on-year increase is partially due to reduced throughputs this time last year as the UK entered its first lockdown. Cow throughput accounted for most of this increase up 2,600 head year-on-year to 47,200 head, whilst adult bull slaughter increased by 300 head to total 1,300 head. Cow carcase weights were up 1.5% year-on-year in April, averaging 313.5kg.
Prime cattle carcase weights rose across all categories in April both on the previous month and on the same month last year. Steers averaged 364.7kg, up 1kg on the previous month and 0.5kg on the previous year. Heifers averaged 331.4kg, up 2.9kg on the previous month and 3.5kg on year-earlier levels. Young bulls remained relatively unchanged on the month at 348kg.
According to the latest market commentary by Quality Meat Scotland (QMS), farmgate prime cattle prices continue to be at the highest level for more than 20 years and have risen 25% compared to a year ago.
"Prices are also firmer across Europe with Irish prices 18% higher when quoted in Euro – 17% when quoted in Sterling – than a year ago and the average steer price across the EU being 16% higher. This does mean, though, that the UK premium over Irish prices has widened considerably from around 12% a year ago to the unusually high level of 18%", said Stuart Ashworth, Director of Economic Services for QMS.
Lack of out of home eating is also a contributory factor to a decline in beef imports over the twelve months to February 2021 which fell some 7%. Exports also fell, by 23%, as global markets adjusted to the changing consumer market behaviour.
A feature of the past twelve months has been the reduced supply of cattle reaching UK abattoirs and in the twelve months to the end of February ex-abattoir production of beef was 1.5% lower than in the previous year. However, the changes to trade meant that the net new supply of beef in the UK was little changed.
"Over the next two to three months, the consumer market will change again both domestically and international although the speed of change will vary between nations. The re-opening of out of home eating and, hopefully, in the medium-term events will mean the way consumers buy meat will change back towards pre-Covid patterns. Equally, in the short-term, some consumers will have reserves of cash they have not spent on commuting to work or leisure and recreation activities. It remains to be seen, though, whether this will allow out of home meal providers to pass through the higher meat wholesale prices they face compared to a year ago or the effect of the return of out of home eating has on the use of imported meat. It also remains to be seen what the legacy of at-home eating and new or relearnt culinary skills is on retail demand and the balance of cuts sold among high street butchers and multiple retailers", added Mr Ashworth.
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