Demand outstripping supply for UK beef
Mintec’s quarterly meat index, published on 16 October, said the onset of autumn and the current cold weather was driving demand for beef. Despite increased slaughtering in Scotland and Northern Ireland in September, up 4% to 48,000 head, and increased average carcase weights in August up 1.5% year-on-year, which created more supply in the market, demand is still outstripping supply, according to Mintec, forcing prices up.
UK pork prices have remained low throughout 2015 despite slight price increases in June and July. Demand is seasonally lower at this time of year, but prices have remained low due to weak demand in the EU market caused by the strong pound making British pork less competitive. High levels of supply have also helped maintain lower prices, the report stated. Pig meat production in the UK totalled 68,400 tonnes in August, an increase of 6% year-on-year.
Lamb prices in the UK are currently at their seasonal low, but high levels of slaughtering have depressed prices even more than usual for this time of year, the report said, with September prices down 5% year-on-year. UK sheep meat production in July increased 4% year-on-year, at 29,900 tonnes. UK sheep slaughterings were at 1.3m head in July, up 2% year-on-year. This was the highest July throughput since 2009 due to an increased lamb flock.
“In the period between May and July 2015, an extra 100,000 lambs have been slaughtered compared to the same period one year ago, which has added more supply to the market and maintained lower prices,” said Mintec.
Chicken prices have increased seasonally due to higher demand for chicken products in the summer months and early autumn as people turned away from red meat. During August 2015, UK broiler placements totalled 74.6 million chicks, an increase of 4% year-on-year, which will see an increase of broilers available to slaughter in the coming weeks, the Mintec report stated. “UK broiler meat production during August was 111,400 tonnes, up 1% year-on-year showing that supply in the UK is still growing and is set to continue to do so.”
