Gap Closing Between Beef Farmgate, Retail Prices

UK - Farmers received a larger share of the retail price of beef and lamb in August 2016 than at the same time in the previous two years.
calendar icon 26 October 2016
clock icon 2 minute read

This was revealed in the October edition of the Market Bulletin - a monthly report produced by Hybu Cig Cymru – Meat Promotion Wales (HCC) to summarise sheep, cattle and pig trading patterns and prices - which focused on the farm to retail price spread for beef and lamb.

The farm to retail price spread is the difference between the farm price and the retail price of food.

UK farmers were receiving a 52 per cent share of lamb prices and a 50 per cent share of beef retail prices by August, but experienced fluctuations in this spread in previous months.

In the lamb sector, the lowest share for UK farmers stood at 49 per cent of the retail price in January but steadily increased to 54 per cent by March. Improved farmgate prices, helped by the fall in the value of Stirling, led to producers receiving a larger proportion of supermarket prices.

The lowest share paid to beef farmers in 2016 so far has been 45 per cent in April, but the situation has gradually improved due to a tightening of supply and steady demand for the product.

HCC’s John Richards, Industry Information Executive said: “The main reason for any fluctuation in the farm-retail price spread is changes to the prices farmers receive for their finished animals in a highly competitive marketplace.

“In August 2016, the farmer’s share for lamb was 10 per cent more than in the same period in 2015, and this reflects the market at that time. A number of factors, including an unpredictable exchange rate and varying supply will influence the development of the situation in the months to come.”

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