Calls for More Promotion as British Beef Price Drops to 5-Year Low
UK - Beef prices have now dropped to a five year low, and yet the retail price has remained relatively static with a 1-2 per cent increase, the National Beef Association (NBA) has said.
5 April 2016
1 minute read
Chris Mallon, Chief Executive of the NBA, commented: “I keep getting told there is a lack of retail demand and because of that the processors have to reduce the price the farmer gets for his beef.
“The idea of price fatigue amongst consumers is often mentioned, i.e. beef is just too expensive - this would hold more water if retail price had moved downwards with the cattle price, but it has not.”
Mr Mallon continued: “The truth is retail price has moved up 1 per cent, whilst on farm prices have been slowly, week by week, coming back to a point where farmers are getting around 46 per cent or less of retail price. We believe there is room for retailers to bring back shelf price and stimulate sales.”
The NBA accused supermarkets of "abysmal or non-existent" beef marketing, and applying promotions mainly to imported products. The organisation said retailers were only interested in turning a profit, and "at the moment that is at the cost of the producer".
Mr Mallon said: “Family farms do not have the ability to continue to subsidise falling supermarket profits any longer.”
The NBA called for retailers to give a fair share, 54 per cent of the retail price, to the producer, as well as marketing the product better and more clearly.
TheCattleSite News Desk
