EUROPE – A recent analysis by Hybu Cig Cymru – Meat Promotion Wales (HCC) has indicated that rising beef imports in the UK have been effectively counterbalanced by a combination of strong consumer demand and a tightening supply of beef across Europe.
According to HCC, these factors have also been bolstered by a surge in beef exports from the UK.
Elizabeth Swancott, the senior market intelligence and research and development officer at HCC, highlighted that the UK beef market has been influenced by a mix of complex factors in the first five months of 2024.
She noted that, despite an increase in beef imports, particularly from Ireland, the supply constraints across Europe and higher domestic production have allowed more UK beef to enter the export market.
Specifically, she mentioned that UK beef exports increased by nearly 11%, rising from 41,900 tonnes in 2023 to 46,300 tonnes in 2024.
Exports for May alone were up 20% compared to the same period in the previous year.
Swancott also pointed out that continued consumer demand, coupled with limited supply, is expected to support beef prices in the coming months.
Ireland, the UK’s largest beef trading partner, has seen a significant increase in exports to the UK, accounting for 77% of the 99,900 tonnes of beef imported, an 18% increase compared to the first five months of 2023.
Despite the strengthening of GB steer deadweight prices throughout July, Irish beef prices have declined, making Irish beef more competitive in the UK market.
Swancott mentioned that data from Kantar revealed a 3% year-on-year increase in the volume of beef sold at retail in the 12 weeks leading up to July 7th, indicating robust consumer demand.
HCC’s marketing initiatives, including the ‘Uniquely Welsh, Naturally Local’ campaign, have reportedly contributed to a rise in consumer awareness and a greater inclination to purchase Welsh beef.
The campaign has increased awareness by 15%, reaching 80%, and has boosted purchasing intent by 21%.
However, Swancott cautioned that the influx of Irish beef into the UK might not continue at its current pace due to an anticipated tightening of supply.
Data from Ireland suggests a decline in the number of cattle reaching slaughter age towards the end of 2024 and into 2025, which could impact the availability and pricing of Irish beef exports.
Bord Bia forecasts a potential reduction in Irish cattle slaughter by 30,000 to 40,000 head (-2%) for the entirety of 2024, a trend that could influence the market in the latter part of the year and into the next.
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