BBQ season is about to cost a whole lot more. This comes with reports that the cost of beef is at an all-time high, with prices up almost 40 pence per kg on July 2016, representing an 11% increase YOY.
The price of pork is also on the rise and set to stay, with costs up almost a third on 2016, and with current prices sitting 20% higher than those in 2015.
- Cost of beef at an all-time high with UK beef prices up 11% on last year
- Pork prices up almost a third on 2016 – with sausages set to stay pricey
- Foodservice Inflation figures show costs up 9%, highest figure in nine years
Paul Connelly, Beacon MD, commented: “The cost of British, Irish and Imported Beef has risen and continues to rise dramatically, with current prices at an all-time high. Prime Beef and trim is in huge demand from both the UK retail and foodservice sectors but also more critically from abroad. The latest Foodservice Inflation figures show that costs are up by 9%, the highest they have been in nine years and it is only a matter of time before suppliers and foodservice outlets will not be able to swallow up these increases and they’ll begin to be passed onto the consumer.”
“In the long term, we predict that beef prices will begin to soften. The increased prices and strong export market are making cattle an attractive farming proposition again, and through an 18-month turnaround period, we could see the availability of UK beef increase and therefore prices steady. The same cannot be said for pork production, which looks likely to struggle to remain competitive against international exporters and adverse exchange rates – so your sausages may be set to stay pricey.”
Supply and demand factors have caused the price rises in UK Prime Cattle. Combining this with the fast-rising demand for UK beef and an increasingly attractive export market, prices have rocketed. Imported cattle costs are also at an all-time high, reflective of the weak pound, increased demand from other world markets and supply issues as a result of severe droughts.
An increased number of farmers leaving the market has lead to pork price increases, as supply is reduced and costs pushed up. Imported pork prices are also continuing to rise because of continued increased demand from China.
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