Do farmers benefit from red meat and chicken price increase?

The overall prices for fresh beef, lamb, pork and chicken rose by 0.35% in July. Fresh lamb prices rose by 0.53%, while pork prices are 0.82% higher compared to June. 

However, beef rose by 1.32%, driven in the main by increases in mince, with lean up 3.78% and breaking through the £10.00/kg mark to finish the month at an average of £10.15/kg and standard up 4.86%, to finish the month at an average of £6.69kg.  

No doubt as consumers switch from lean to standard in the minced beef category, shoppers will see the average price per kg for the latter rise in the coming month. Fresh chicken rose by 1.44% driven by chicken thigh fillets up 5.02% suggesting some switching away from breast portions, though these also rose, by 1.29% during the month. 

The figures for the last twelve months show a 13.11% price rise over July 2024. As with the monthly figures, this is being driven by beef (+32.56%) and chicken (+10.29%). Beef steaks are up an average of 42.5%, with mince +37.7% and roasting joints +35.33%. 

Lamb prices, with the exception of shanks, are all higher than 12 months ago. Of note, bone-in shoulder price increased by 12.92% and whole legs by 11.42%, showing that demand for roasting joints continues, with no doubt savvy shoppers cooking a whole joint and then stretching it across two or three meal occasions. 

The same could probably be said for pork shoulder (+10.22%), with the popularity and economy of pulled pork coupled with a shelf price of less than an average £5.00kg, making it a destination cut for many consumers. 

Within chicken it is all about breast portions (+15.31%) versus boneless chicken thighs (+16.14%). Both are seen as highly versatile across many different cooking methods and styles of cuisine.  

‘Retailers and shoppers are sticking with British red meat and chicken’

Tony Goodger, head of communications at AIMS, said: “My reading of the market is that there is still some distance to run before we see year-on-year meat and poultry price increases settle.   

“Our price monitoring is all based on British products, and whilst we have seen importers move to grab a slice of the consumer’s shopping baskets as a means of driving up their margins, it does appear that at present in the main retailers and shoppers are sticking with British red meat and chicken”. 

Grace Randall, AHDB lead retail insight manager, added: “We’ve seen a recent shortage in UK beef supplies, which has driven up prices at the farmgate. While prices are now starting to level out, these increases are beginning to filter through to retail, which is why shoppers may be seeing higher beef prices on shelves.” 

‘Producers need confidence’

NFU president Tom Bradshaw said that it is vital that farmers can operate within a supply chain that is fair, transparent and values the role they play in producing high-quality British food. 

“British livestock and poultry producers continue to face significant pressures and the tight market for proteins is representative of the challenges over recent years, from input costs and changing policy to unpredictable weather and notifiable disease outbreaks. They need confidence that their businesses are viable for the long-term. 

“Ensuring fairness across the supply chain is essential to maintaining food security, supporting rural economies and giving consumers continued access to trusted, British produce.

“We’ll continue to work with government and the supply chain to build confidence and improve transparency in the food system so that it delivers fair returns to farming businesses,” he concluded. 

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