AHDB explores cost-of-living crisis impact on red meat and dairy

The first webinar, taking place on 13 October, will focus on the impact of the cost-of-living crisis on meat and dairy demand
The first webinar, taking place on 13 October, will focus on the impact of the cost-of-living crisis on meat and dairy demand

Analysts have produced a series of articles on the current cost-of-living crisis, exploring the challenges and opportunities for the red meat and dairy sectors.

The in-depth analysis by AHDB will look at the impact of the struggling economy on household budgets and buying behaviours.

Its report will also look at the foodservice and retail markets to predict short and longer-term demand for beef, lamb, pork and dairy products.

Analysts will explore how the current climate is impacting consumer attitudes towards some of the biggest key reputational factors for industry such as trust, environment, health and animal welfare.

The findings will be highlighted in two webinars next month, providing the industry with insight into what the future could hold.

The first webinar on 13 October will focus on the impact of the cost-of-living crisis on meat and dairy demand, while the second on 20 October, will explore the impact of the economy on consumer attitudes towards the industry.

AHDB senior consumer insight manager, Steven Evans said the cost-of-living crisis was having a major impact on all sectors.

"AHDB has taken an in-depth look at how squeezed household budgets are affecting demand for red meat and dairy as well as consumer attitudes towards key reputational risks for the industry.

“Our webinars will provide a valuable opportunity for levy payers to hear more about these important topics, the opportunities that still exist as well as gain a greater understanding of what the future could hold for their sector.”

The first webinar will expand on recent insight into the foodservice and retail sectors, highlighting where consumers are making savings and which products are mostly affected.

In retail, discounters now have the highest ever share of grocery and this is expected to increase further with more cash-strapped shoppers looking to make their budgets go further.

IGD predict discounters will grow 23.9% over the next five years – the fastest and largest growth of grocery channels, delivering an additional £7.1 billion in sales.

In the 12 weeks ending 12 June 2022, Kantar Worldpanel data showed hard discounters – which are Aldi and Lidl – accounted for 18% of dairy sales and in the 12 weeks ending 10 July 2022, they accounted for 20% of meat fish and poultry volumes.

Research has also shown that for foodservice, recovering from the pandemic was already daunting enough.

However, rising costs, labour shortages and supply chain issues have put inflationary pressure on an already struggling market.

AHDB senior retail insight manager, Kim Heath said: “If we look at just dine-out, which includes food-to-go, breakfast and lunch now make up fewer trips compared to 2019.

"With consumers dining out less than 2019, it’s unsurprising that all meats are being impacted," she explained.

“There is a real need for establishments to offer different deals to value-seeking customers and this will be further heightened as financial pressures worsen.”

The second webinar, on 20 October, will explore the impact of the current consumer landscape across important reputational factors, highlighting the challenges and opportunities.

Previous research has shown that farmers are the most trusted group in the supply chain and the session will look at what drives that trust and how it plays out across different groups of consumers.