LMC Report: Seasonal Recovery In Beef Demand
NORTHERN IRELAND, UK - The latest four weekly data from Kantar Worldpanel shows that from July to early September a recovery in GB retail beef demand has been underway, with consumption having bottomed out in June.
30 September 2010
2 minute read
Similar seasonal trends have been observed over the last four years and a robust recovery in demand into the autumn may provide some encouragement to beef finishers who are currently operating in a lower price environment. The current poor level of farmgate beef prices contrasts sharply with the strong retail beef prices over the last few months. In the early part of this year, retail beef prices in GB were more or less on-a- par with prices in 2009. However, over the summer, a gap has opened and retail prices during July and August were on average 20p/kg (3 per cent) higher than prices during the equivalent period last year.
With higher retail prices, reduced beef demand was a feature of the retail trade in July, with demand for roasting joints 13 per cent lower than in July 2009. Slower sales of roasting joints was also evident in August and early September. However, with increased sales of mince, stewing and frying / grilling cuts, beef volume sales were 1 per cent higher during August 2010 compared to August 2009. During the summer, beef volumes have been bolstered by increased sales of frying / grilling cuts due to increased supermarket promotions. This July sales were 5.5 per cent higher compared to July 2009 and in August sales were up by 8.6 per cent on the same month last year. Increased demand for steak cuts has been a feature of the trade generally over the last year. In the 52 weeks ending 5th September 2010, demand for frying/grilling cuts was 7 per cent higher than during the previous 52 week period. Greater demand for these more expensive cuts should be positive for the industry.
In August and early September the combination of higher retail prices and improved demand resulted in an increase in consumer expenditure on beef in GB. This August, beef expenditure was 4 per cent higher than last August. Over 52 weeks ending 5th September 2010, expenditure was 2 per cent higher than during the previous 52 week period.
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