NFU warns beef sector facing 'critical period' as cattle prices fall

Britain’s beef farmers are facing mounting pressure as falling cattle prices, rising costs and shrinking herd numbers threaten confidence across the sector, the NFU has warned.

In an open letter to processors and retailers, NFU Livestock Board Chair David Barton called for “long-term support” for British beef producers as volatility continues to grip the market.

The warning comes just days after the National Beef Association described the current situation as a “line in the sand moment” for British beef production.

GB deadweight cattle prices have fallen in recent months, raising fresh concerns about profitability and long-term investment across the sector.

At the same time, producers are dealing with higher fuel and fertiliser costs, alongside ongoing delays in booking cattle in for processing.

Mr Barton said the combination of pressures was damaging confidence and adding extra costs for farmers already operating in an uncertain market.

“Farmgate returns continue to reduce while we’re seeing increased costs for key inputs such as fuel and fertiliser,” he wrote.

He added that processing delays were pushing up feed and housing costs while also increasing farms’ carbon footprint.

The NFU said the beef sector remains a major contributor to the UK agricultural economy, worth £4.1 billion in 2024 and accounting for 13% of total agricultural output.

Despite historically strong headline cattle prices in recent years, Mr Barton warned that many farmers were now reconsidering future investment plans.

Livestock numbers continue to fall, with the GB suckler herd contracting by a further 3.1% last year.

Many producers, he said, are now weighing up their options for the short and medium term as confidence across the industry remains low.

“To ensure a resilient, home-grown beef supply, the NFU is calling on the supply chain to show long-term support,” Mr Barton said.

He argued that farmers need a “fair, transparent agri-food supply chain”, including a clearer understanding of carcass values so they can invest with greater certainty.

Mr Barton also warned that temporary price spikes followed by sharp market corrections were failing to provide the stability needed for long-term herd rebuilding.

“Rebuilding breeding herds is a multi-year journey that requires certainty,” he said.

“If farmers do not have the confidence to invest in their herds in this way, then we could see a continued decline in livestock numbers.”

The NFU said beef producers were carrying the greatest level of risk by making long-term financial decisions without any guarantee over the final price they would receive.

“True stability means backing British farming during shifting market cycles,” Mr Barton added.

“We want processors and customers of British beef to show the same commitment to grow the sector.”

The union also pointed to continued public support for home-grown food, saying most consumers wanted British farms to produce more food to strengthen national food security.

Mr Barton described British grass-fed beef as a “world-class, sustainable product” and said greater transparency across the supply chain could help secure the sector’s future.

The NFU’s warning follows fresh concerns raised earlier this week by the National Beef Association over the latest drop in cattle prices.

In a separate open letter, NBA chief executive Neil Shand said mounting financial pressure was leaving more producers questioning whether they could continue in the industry.

“Every drop in price chips away at confidence, erodes the national herd, and pushes more family farms to question whether they can keep going,” he said.

“We are running out of road.”