Keeping up to date with all of the latest beef market information is crucial. Here we have all the latest analysis and insight from our industry experts to help guide you through market movements and provide a clear, impartial view on what it all means.
Store cattle prices across England and Wales have been showing gains in recent weeks. Store prices continue to follow the same market trends as finished cattle prices, and as the deadweight price continues to extend its premium over the five-year-average, so does the store price.
This article focuses on the main factors that will influence the red meat sector in the coming years, particularly in light of the two major events of 2020, the coronavirus outbreak, and the upcoming deadline for Brexit.
Earlier this week the UK government announced the new Most Favoured Nation (MFN) tariff regime which will apply to all imports from countries who do not have a trade deal with the UK. For beef and lamb, the tariffs broadly mirror the level of the EU’s current Common External Tariffs.
The COVID-19 outbreak has introduced a great deal of challenges into the dairy market. Some farmers may cull less profitable, or ‘passenger’ cows to reduce costs and milk production. But what could an increase in culling rates look like, and what would be the impact on the beef supply chain?
The largest volume of meat from the carcase, commonly sold at retail, is mince. Although in volume at least 43% of the carcase is minced; in value it only contributes around £780/head* to the overall retail value of the carcase meat.
In recent weeks retail demand for mince has risen sharply. There is some product available from foodservice that could be diverted into retail, however this is unlikely to be enough to cover the increase in demand for mince at retail level.
In December AHDB released its forecasts for cattle and sheep production. Since then the market has changed dramatically with much of Europe now in ‘lockdown’ due to coronavirus. Sheep prices have come under pressure with a lack of demand both domestically and in Europe, and the cattle industry is struggling with carcase balance.
Looking back over the past five years there is very little link between GB farmgate and retail prices. Although the overall average retail price appears to fluctuate week-on-week, this is really because of changes in the weekly mix of products sold.