Record prices for British meat

Published on Friday 13 February 2009 20:59

BEEF producers are currently enjoying near record prices in the wake of a steady demand and a continuing reduction in supplies. Consumers may now be turning to cheaper cuts and more mince, but the market remains underpinned by a strong export demand. The weakness of sterling relative to the euro is also proving to be a major trading advantage.

Figures from HM Customs and Revenue show that in the January to end of November period of 2008, total exports rose by almost 20,000 tonnes to 73,746 tonnes. That was almost double the figure for the same months in 2006.

The Republic of Ireland was the biggest customer for UK beef taking in over 28,000 tonnes – up from 16,278 tonnes over the same months in 2007. Exports to the Netherlands amounted to 23,578 tonnes – up from 17,154 tonnes. Most of the beef in the export trade is from cows. This is reflected in the fact that cull cows at the end of their working life can be worth as much as 1,000 per head.

However, the UK remains a substantial importer of beef, but over that eleven-month period in 2008 the inflow at 224,988 tonnes increased only marginally. Ireland was the largest supplier shipping over 140,000 tonnes – up by 6,000 tonnes. In contrast Brazil, which is subject to a near-total ban on trade with the EU, exported just 6,213 tonnes to the UK. That was well below the 24,626 tonnes of the previous year.

Exports of UK sheep meat also enjoyed a considerable boost last year with a total of over 76,000 tonnes, which was well ahead of the 2007 figure of 60,000 tonnes. But it has to be remembered that exports in the autumn of 2007 were restricted by the outbreak of foot-and-mouth disease in Surrey.

Imports of lamb in 2007 slipped by 3,000 tonnes to 105,646 tonnes. New Zealand, as has been the case for the better part of a century, was the principal supplier sending in just short of 80,000 tonnes. However, the latest information from Meat and Wool New Zealand suggests that there is likely to be a decline of over 20 per cent in the number of lambs processed in the coming months: that will have a major impact on UK prices both for producers and consumers.

Poultry is viewed as excellent value for money, especially in these times of economic austerity. However, UK imports in the first eleven months of last year actually declined by 50,000 tonnes to 300,185 tonnes. UK exports of poultry declined by almost 20,000 tonnes to 253,679 tonnes.

The UK pig industry is now down to 50 per cent of what it was a decade ago, but imports of pork last year declined by 50,000 tonnes to 358,000 tonnes. However, imports of bacon and ham increased by 8,000 tonnes to 263,831 tonnes. Exports of UK pig meat were a bright feature of last year with the total up by over 14,000 tonnes to 103,462 tonnes.