British shoppers spending more on beef, but buying less
Spend on beef products increased by 5pc between late February and mid-May compared to the same period last year, due to a combination of a 2.4pc decrease in volumes purchased as well as a 7.7pc increase in average prices paid, according to the Agriculture and Horticulture Development Board (AHDB), citing Kantar data.
Total primary beef volumes sold to British consumers by supermarkets decreased by 2.5pc in this period. Mince saw a 1.8pc decrease in volumes purchased (-607 tonnes) due to a decrease in shoppers and volume purchased per trip.
Diced beef saw volume decreases this period (-4.2pc) due to a decrease in buyers and a decrease in frequency of purchase. Steak also saw a 4pc decrease in volumes due to declines in volumes purchased per trip and number of buyers.
Beef roasting volumes saw a moderate increase (+0.4pc). While there is a decrease in frequency of purchase, this was offset by an increase in volume purchased per trip, likely influenced by Easter falling within this period.
Burgers and grills saw a moderate 0.1pc increase in volumes purchased, likely constrained by a huge 12pc rise in average price per volume
Processed beef saw a 1.2pc increase in volumes purchased year on year. Burgers and grills saw a moderate 0.1pc increase in volumes purchased, likely constrained by a huge 12pc rise in average price per volume.
Total added-value products all saw an 8.4pc decrease in volumes purchased this period, driven by the performances of marinades, sous vide and ready-to-cook beef.
Marinades saw a 5.1pc volume decrease due to decreases in frequency of purchase and shopper numbers. Ready-to-cook beef volumes declined 2.6pc year on year due to a decrease in shoppers.
Meanwhile, the AHDB has also reported that the total British cattle population at April 1 has contracted again to 7.54 million head, down 1.7pc on the previous year.
A key driver of this decline was contraction in the beef breeding herd, down 3.4pc from the same time last year. The dairy breeding herd has remained more constant, down by only 0.2 pc from last April.
The cattle population available for beef production aged 12-30 months was recorded to be down by 52,000 head (-3pc) compared to April last year, with the biggest reduction being seen in the 18-24 month age group.
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The AHDB said this indicates continued beef supply tightness moving forward, potentially lending support to prices over the next six to 12 months.
However, the number of cattle for beef production recorded aged zero to six months has increased by almost 8,000 head compared to April last year, with year-on-year increases in beef animals of both sexes.
Market signals, such as the exceptionally high beef prices of the past few months, may have encouraged producers to restock over the past six months
'Market signals, such as the exceptionally high beef prices of the past few months, may have encouraged producers to restock over the past six months, supporting this increase,' AHDB analyst Grace Bolton said.
However, she said, from the most recent data, it appears that, in the short term, falling GB cattle populations are here to stay, especially influencing the beef supply chain.
'However, the recent record high beef prices may be beginning to support the production decisions of farmers, leading to annual growth in the zero-to-six-month population of cattle available for beef as of April 1.
'The composition of the GB beef herd is also continuing to shift, with breed types changing and dairy beef becoming ever more prevalent as dairy bull numbers continue to fall,' she said.
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